201707.18
0

Parkview Health System Series 2017A Revenue & Refunding Bonds

Borrower Overview

PHS is a physician-led regionally integrated health care delivery system providing services to 15 counties in northeast Indiana and northwest Ohio. PHS has a combined 898 licensed beds and generates over $1.5 billion in annual revenues. PHS is a network of nine hospitals with the flag ship facility located on the northwest side of Fort Wayne, Indiana. The flagship hospital was constructed on a greenfield site between 2009 and 2012. Since opening the new facility market share has increased 5.5% to 49.3% of the market. PHS has been a Ponder client since 2009.

Focus on Value

Ponder served as Financial Advisor to PHS on the 2017 financing, including assisting with:

  • Developing the plan of finance, which was structured to generate interest savings, improve the Balance Sheet by releasing a $16mm DSRF, and lower aggregate MADS (from $54 to $46 million)
  • Managing the deal team, rating agency process and investor outreach strategy
  • Working with the Underwriter to structure the transaction based on PHS’s goals and objectives, including selling the 2028-2030 bonds as non-callable to lower the yields

The strategy ultimately proved effective as PHS’s bond issue took advantage of low market rates and significant demand (10x oversubscribed) to lock in an attractive cost of capital and generate approximately $21.4 million of present value savings (17.9% of par).

Download Full Case Study