Memorial Health System Series 2019 Tax-Exempt Fixed Rate Bonds

9 Jan

Case studies

Memorial Health System Series 2019 Tax-Exempt Fixed Rate Bonds

$130,005,000 Series 2019 Tax-Exempt Fixed Rate Bonds

About Memorial Health System

Memorial Health System (the “System”) is an Illinois not-for-profit corporation headquartered in Springfield, Illinois. The System’s mission is to help improve the health of the people and communities it serves, and its vision is to be a national leader for excellence in patient care. The System operates an integrated healthcare delivery network that operates four hospitals in central Illinois and encompasses a 40-county service area. The System achieves its mission and vision by providing a great patient experience that emphasizes primary care services as well as continuity and coordination of services between System providers and collaboration with its partners, all based upon its values of service to humanity, excellence in performance, respect for the individual, value of employees, integrity in relationships, community responsibility, and equal access.

Comparable Bond Sales

Memorial Health System Comparable Bond Sales

Focus on Value

Ponder served as financial advisor to Memorial Health System for its Series 2019 Revenue Bonds. The 2019 Bonds, will be used to (a) current refund $144,535,000 of Illinois Finance Authority Revenue Bonds, Series 2009; and (b) pay or reimburse Memorial Health System for the costs of acquiring, constructing, renovating, remodeling and equipping certain health care facilities.

To facilitate Memorial Health System’s first public offering since 2014, Ponder worked with the Systems on its rating agency (which achieved A1 and AA- ratings from Moody’s and S&P, respectively), investor and credit support strategies. The investor presentation was viewed by over 50 investors. Despite being one of the first healthcare
borrowers to enter the market in 2019, the financing attracted significant investor interests with oversubscriptions of 2-8x in most of the maturities. With Ponder as the pricing advocate, Memorial Health System was able to lower yields on the early/mid maturities by 2-5 basis points.

Ponder worked closely with the underwriters to structure the fixed rate financing and achieve an attractive all-in TIC of 3.582%.

Pricing Results:

Credit Ratings: A1/AA-/NR

Memorial Health System Series 2019 Pricing Results

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