Yale New Haven Series 2020 Bonds
Pricing Date: August 11, 2020
Expected Closing Date: August 18, 2020
$400,000,000 Series 2020 Bonds
Objectives
With its 2020 plan of finance, Yale New Haven Health (“YNHH”) sought to bolster its Balance Sheet liquidity and take advantage of low interest rates, while maintaining existing ratings and moving rapidly towards execution.
Challenges
With its proximity to New York City, YNHH was on the front lines of the COVID-19 pandemic in its earliest days. Thus, while developing its plan, YNHH not only faced the market upheaval and loss of elective surgeries like its peers, but also faced the operational challenges related to being in a ‘high-impact’ COVID zone. In addition, its goal of securing greater liquidity put increased pressure on its credit given that it required a doubling of its debt load in 2020.
Solution
Ponder advised YNHH through all aspects of the plan of finance development and execution.
- Plan Development: Constructed a dynamic plan with YNHH to respond to evolving markets and capital needs
- Debt Capacity: Advised on the overall financing size to optimize the borrowing within rating parameters
- Rating Process: Honed materials and messaging; which were essential given the significant rise in leverage
- Execution: Led all aspects of the 2020 plan of finance including the taxable private placement, existing interest rate swap ‘wrapping’, and the Series 2020 bonds
- Marketing: Consulted throughout the marketing process including on the investor presentation, Q&A preparation, and 1×1 investor calls
- Pricing: Worked with the banks to ensure that the lowest possible rate was achieved (which was the second lowest rate ever attained for 30-year taxable not-for-profit healthcare bonds at 2.496%)
About Yale New Haven Health: Aa3/AA-/AA- (Moody’s/S&P/Fitch)
YNHH is the largest provider of healthcare services to residents of Connecticut, with a geographic scope from eastern New York to southern Rhode Island. The system provides comprehensive patient care through its five hospitals, physician group and other operating entities. YNHH has a clinical affiliation with Yale University School of Medicine.
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