Ziegler Closes $65 Million Conway Hospital Healthcare Transaction
October 24 2011 - 2:58PM
Marketwired
Ziegler, a specialty investment banking firm, is pleased to
announce the successful closing of a $19,510,000 fixed-rate private
placement issue and a $45,855,000 variable rate private placement
issue for Conway Hospital (Conway). Conway, rated "A3" by Moody's,
operates a 210-bed general acute care facility located eight miles
west of Myrtle Beach, SC.
Ziegler served as placement agent for the fixed-rate refunding
of the hospital's Series 1998 fixed-rate bonds. The transaction has
a 10-year fully amortizing term. Ziegler conducted a competitive
bid process and sourced attractive terms and a 3.00% interest rate
resulting in net present value savings of over $3.2 million or
15.2% of the refunded bonds. The transaction reduced the
organization's debt outstanding as the refunded bonds' debt service
reserve fund was released.
Ziegler also placed a variable rate conversion of the hospital's
Series 2007 insured variable rate demand bonds. The transaction
carried a 7-year initial term versus the current standby facility
expiration of 2012 allowing Conway to reduce bank renewal risk.
Through a competitive bid process, Ziegler optimized pricing with
an attractive formula rate of 74% of 1 month LIBOR + 0.96% allowing
for capital cost reduction and translating into $1.4 million in net
present value savings or 2.9% of the refunded bonds. Ziegler also
negotiated the removal of the existing debt service reserve fund
allowing the hospital to reduce leverage.
The conversion facilitated the preservation of the hospital's
existing LIBOR-based fixed payer swap as a hedge while eliminating
swap basis risk inherent in the previous structure. The transaction
also mitigated credit counterparty risks and terminated
remarketing, bank downgrade and market dislocation risk.
For over 80 years, Ziegler has been assisting hospitals and
healthcare organizations with creative, tailored financial
solutions for their capital needs. Ziegler offers its healthcare
clientele an array of services including investment banking,
financial risk management, merger and acquisition services as well
as capital and strategic planning. Mike Quinn, Director at Ziegler,
states, "Ziegler was thrilled to assist Conway with the
restructuring transactions which greatly reduce capital structure
risk and provide meaningful debt service savings."
For more information about Ziegler and please visit us at
www.Ziegler.com.
About Ziegler: The Ziegler Companies, Inc.
(PINKSHEETS: ZGCO) together with its affiliates (Ziegler) is a
specialty investment bank with unique expertise in complex credit
structures and advisory services. Nationally, Ziegler is ranked as
one of the leading investment banking firms in its specialty
sectors of healthcare, senior living, religion and education
finance, as well as corporate finance and FHA/HUD. Headquartered in
Chicago, IL with regional and branch offices throughout the U.S.,
Ziegler creates tailored financial solutions including bond
financing, advisory, private placement, seed capital, M&A, risk
and asset management. Ziegler serves institutional and individual
investors through its wealth management and capital markets
distribution channels.
Certain comments in this news release represent forward-looking
statements made pursuant to the provisions of the Private
Securities Litigation Reform Act of 1995. This client's experience
may not be representative of the experience of other clients, nor
is it indicative of future performance or success. The
forward-looking statements are subject to a number of risks and
uncertainties, in particular, the overall financial health of the
securities industry, the strength of the healthcare sector of the
U.S. economy and the municipal securities marketplace, the ability
of the Company to underwrite and distribute securities, the market
value of mutual fund portfolios and separate account portfolios
advised by the Company, the volume of sales by its retail brokers,
the outcome of pending litigation, and the ability to attract and
retain qualified employees.
Christine McCarty 312 596 1617 Email Contact
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