Adena Health System $83,270,000 Financing (Series 2019)

June 25, 2019

Cain Brothers served as the Sole Manager in the public issuance of $83,270,000 of fixed rate revenue bonds on behalf of Adena Health System (“Adena”). Adena is a not-for-profit, three-hospital system headquartered in Chillicothe, Ohio. The System includes a 260-provider medical group and three hospitals: a 261-bed flagship, Adena Regional Medical Center, and two 25-bed critical access hospitals, Adena Greenfield Medical Center and Adena Pike Medical Center. In addition to the hospitals, Adena provides a variety of outpatient, clinic, physician and ancillary services at various locations in its broad nine-county service area. In FY 2018, the system generated over 12,000 admissions and over 758,000 outpatient visits.

Proceeds of the Series 2019 Project will be used primarily for the construction of a new 125,000 square-foot expansion of the System’s flagship Adena Medical Center (the “Project”).  The Project includes a 20-bed surgical inpatient nursing unit, space for six new operating rooms and related support space, and relocation of the Corporation’s Bone & Joint service line to the new facility, plus a 300-vehicle parking deck. The Project promises to reshape the Adena Medical Center campus and assist Adena in its efforts to form a regional rural healthcare hub.

The Series 2019 bonds were issued with a public bond rating of A3 (stable) and A- (stable) by Moody’s and S&P, respectively. Adena took advantage of its strong credit and the current market environment to refund its outstanding Series 2010 bank debt.

Strong marketing from the management team’s investor roadshow and favorable market conditions resulted in robust investor demand that facilitated a very attractive 30-year final maturity yield of 2.99% and an all-in cost of capital of 3.70%.

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