Flagler Health + Series 2020AB Bonds

2 Sep

Case studies

Flagler Health + Series 2020AB Bonds

Pricing Date: August 25, 2020

Closing Date: September 1, 2020

$102,000,000 Series 2020A Bonds

$66,000,000 Series 2020B Bonds


Flagler Health + (“Flagler”) took advantage of current favorable market conditions to fund the construction of three health villages to provide traditional health services and dedicated green spaces underserved rapidly growing communities in St. John’s County, the construction of an urgent care center on Flagler’s main campus, acquisition of land for a future acute care facility and refinancing of certain outstanding debt issues to eliminate restrictive “off-market” covenants and provisions.


While Flagler faired relatively well during the pandemic, its “BBB” rating and relatively large undertaking of taxable debt (an increase of almost 80%) was a challenge. Additionally, competitors recently announced their intention to construct competing acute care facilities within Flagler’s service area


  1. Plan of Finance: Despite market challenges and uncertainties, Flagler met all aspects of the initial plan of finance which Ponder helped develop well before the pandemic
  2. Master Trust Indenture (“MTI”): With the refinancing of certain outstanding debt issues and consent from its existing commercial bank, Ponder assisted Flagler in implementing a “state of the art” MTI which provided relief from onerous covenants and provisions
  3. Debt Capacity: Advised on the overall financing size to optimize the borrowing within rating parameters
  4. Rating Agency Process: Drafted materials and messaging for the rating process including extensive discussion on Flagler’s strategic plan and the impact of COVID-19
  5. Bond Insurance: Spearheaded the attainment of bond insurance to lower overall cost and improve marketability
  6. Execution:  Led the deal team throughout the entire process
  7. Marketing: Advised throughout the marketing process including the investor presentation, Q&A preparation, and 1×1 investor calls
  8. Pricing: Flagler achieved optimal coupon and amortization structure to ensure the lowest possible rate while minimizing maximum annual debt service and preserving a 10-year par call-option on 30-year taxable bonds

About Flagler Health+: BBB (S&P) 2020 Bonds insured by AGM (Rated AA by S&P)

Flagler Health+ (“Flagler”) is anchored by Flagler Hospital, a 335 licensed bed acute care facility. The Hospital is located on a 73-acre health park just outside of downtown St. Augustine and approximately 41 miles south of Jacksonville. Flagler is currently the only hospital facility in St Johns County and maintains a leading market share (72%) in the County.

Pricing Results:

Flagler Health Pricing Results

Comparable Bond Sales:

Flagler Health Comparable Bond Sales