Southeast Alaska Regional Health Consortium Series 2021

30 Sep

Case studies

Southeast Alaska Regional Health Consortium Series 2021

Pricing Date: September 22, 2021

Closing Date: September 30, 2021

$300,000,000 Series 2021 Taxable Bonds


Southeast Alaska Regional Health Consortium (“SEARHC”) is financing the modernization of its health care campus in Sitka in conjunction with a joint venture with Indian Health Services. SEARHC strove to attain the necessary funding at the lowest cost and with the greatest flexibility in both optionality and covenants.


  1. Introduction of a brand new credit to the market with a unique revenue stream
  2. Significant increase in leverage for its size
  3. Desire for flexibility led to a unique set of bond attributes (non-index eligible, 10-year par redemption, and a flexible covenant package)
  4. A short window for deal execution


  1. Rating Agency Process: Ponder developed SEARHC’s rating agency presentation and assisted SEARHC in crafting its unique story for the rating agencies, Assured Guaranty and investors
  2. Debt Capacity: Ponder advised on the overall financing size to optimize the borrowing within rating parameters
  3. Optionality: SEARHC was able to issue $150 million with 10-year par call, providing significant flexibility
  4. Structure: Given a par call is somewhat unique for a taxable bond with a corporate CUSIP, Ponder advised on utilizing insurance to help create demand for the desired structure by appealing to the widest base of investors
  5. Marketing: Advised SEARHC through the marketing process including investor presentation drafting, Q&A preparation, and participating on all of the 1×1 investor calls
  6. Timing: Ponder led the team to meet the goal of a 9/30 closing (less than 2 months from kick-off)
  7. Pricing: 35 unique investors placed orders for over $1.5 billion of bonds, allowing the underwriters to lower rates and lock in a very attractive long-term cost of capital with significant flexibility

About Southeast Alaska Regional Health Consortium: ‘A-/A-’ (S&P/Fitch)

SEARHC is one of the largest Native-run health organizations in the United States. As a nonprofit health consortium, SEARHC provides health-related services in 27 communities throughout Southeast Alaska, in many of which it is the sole provider of healthcare services. SEARHC operates two critical access hospitals along with 17 primary care clinics.

Pricing Results Series 2021:

SEARHC Series 2021 Pricing Results

Key Pricing Takeaways:

SEARHC Series 2021 Pricing Takeaways