Parkview Health Care Series 2018 A,B & C and 2019 A

2 Oct

Case studies

Parkview Health Care Series 2018 A,B & C and 2019 A

$82,015,000 Series 2018A Tax-Exempt Fixed Rate Bonds
$33,035,000 Series 2018B Federally Taxable Fixed Rate Bonds
$32,710,000 Series 2018C FRN
$22,120,000 Series 2019A Tax-Exempt Forward Delivery Fixed Rate Bonds

About Parkview Health System

Parkview Health System, Inc. (“Parkview Health”), is a community based Indiana nonprofit corporation operating a physician-led regionally integrated health care delivery system. Parkview Health provides services in 15 counties in northeast Indiana and northwest Ohio including six acute care facilities, a behavioral health hospital, a tertiary care center, and an orthopedic specialty hospital through a joint venture. Parkview has a combined 882 beds in service. In FY2017, the system had revenues of $1.7 billion.

Focus on Value:

Ponder has been advisor to Parkview for over a decade and most recently served as financial advisor to Parkview Health on its 2018 financing.

  • The 2018A, 2018B Bonds will be used to construct the “PRMC South Tower” a 165,000sqft addition to the main campus to add space for inpatient growth, renovate the Women’s and Children’s Hospital at PRMC campus, and provide 20 additional beds in the Parkview Randallia renovation.
  • The 2018C Bonds will be used to current refund the outstanding 2016C Bonds in the amount of $24.96mm using a SIFMA based Floating Rate Note.
  • The purpose of the 2019A Bonds is to current refund existing 2009A Bonds in the amount of $23.71mm. The 2019A Bonds utilized a four month forward delivery to lock in significant savings with minimal forward premium.

Parkview desired a mix of coupons and to achieve diversity in its debt structure using both 5% and 4% coupons. This resulted in a $53.5mm 4% Coupon Bond in 2048. The taxable bonds took advantage of Municipal CUSIPS and were sold as serial bonds to lower the blended cost of capital.

The 2019A forward delivery serial bonds saw strong investor demand with 2-6x oversubscription.

Ponder’s unique pricing advisory structure provided support for lowering spreads on most maturities on the fixed rate bonds and holding the credit spread on the Floating Rate Note despite market pressures.

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