United Health Services Hospital Series 2020 Tax-Exempt Fixed Rate Bonds

12 Aug

Case studies

United Health Services Hospital Series 2020 Tax-Exempt Fixed Rate Bonds

Bond Sale Date: August 12, 2020

Expected Closing Date: August 26, 2020

$257,495,000 Series 2020 Tax-Exempt Fixed Rate Bonds


With its 2020 financing, United Health Services Hospital (“UHSH”) sought to finance the revitalization project on its Wilson campus as well as the implementation of a new EPIC IT system. In addition, UHSH sought to refinance its existing frontloaded debt structure, modernize and create flexibility around its covenant package, and establish 30-year level debt service.


UHSH had initially targeted an April financing, but was delayed when the COVID pandemic hit the State of New York. While receiving fewer patients than its downstate peers, it did suffer financially from the loss of elective surgeries and economic slowdown. In addition, its EPIC install was delayed, complicating timing considerably.


Ponder has advised UHSH over the last year as it planned, amended and executed its plan of finance.

  • Plan of Finance: Developed the initial plan with management, and revised as markets and capital needs shifted.
  • Debt Capacity: Advised on the overall financing size to optimize the borrowing within rating parameters.
  • Rating Agency Process: Drafted materials and messaging for the rating process including a follow up presentation to discuss impact of COVID-19; settled on one rating with insurance to minimize cost and future requirements.
  • Bond Insurance: Spearheaded the attainment of bond insurance to lower overall cost
  • Execution: Led the deal team throughout the process, including devising the flexible covenant package.
  • Marketing: Advised throughout the marketing process including the investor presentation, Q&A preparation, and 1×1 investor calls; guided UHSH through requests for additional data and covenants with no changes.
  • Pricing: Worked with the banks to develop the optimal coupon and amortization structure to meet UHSH’s goals; the significant use of 3% coupons lowered the yield to maturity (the all-in cost of 2.84% was far below UHSH’s initial goals).

About United Health Services Hospital: BBB (S&P) 2020 Bonds Insured by AGM

UHSH, based in Binghamton, NY, is the leading, clinically integrated healthcare delivery system serving patients in the Southern Tier of New York and northern Pennsylvania. UHSH owns and operates four hospital campuses, 40+ ambulatory access points, 2 skilled nursing facilities, home care services, and is affiliated with the largest physician network in the area (United Medical Associates, P.C.)

Pricing Results:

Pricing Results United Health Services Hospital Series 2020

Comparable Bond Sales:

Comparable Bond Sales United Health Services Hospital Series 2020