California University of Science and Medicine Series 2019A & B

July 29, 2019

Cain Brothers served as Placement Agent in the private placement of $46,115,000 of tax-exempt and $10,750,000 of taxable fixed rate revenue bonds on behalf of California University of Science and Medicine (“CUSM”).  CUSM operates a medical school under the name California University School of Science and Medicine – School of Medicine (“School of Medicine”) and offers an M.D. program as well as a program leading to a Master of Biomedical Sciences (“MBS”) degree.  Arrowhead Regional Medical Center (“ARMC”), a 456-bed teaching hospital located on a 70-acre campus in Colton, California is the School of Medicine’s primary teaching hospital under a hospital affiliation agreement. In addition to its relationship with ARMC, CUSM has several clinical affiliations with other hospitals, medical groups, community clinics, and the San Bernardino Department of Public Health that foster service learning and community engagement with the third- and fourth-year students’ clinical rotations to augment the ARMC clinical rotations. CUSM welcomed its first classes of 64 M.D. program students and 36 MBS program students in the summer of 2018.

Proceeds of the bonds will be used to finance the cost of developing, contracting, furnishing and equipping an approximately 87,000 square foot new medical school building surrounding a center courtyard, with a parking lot accommodating 416 spaces including 10 handicapped stalls and three accessible electric vehicle stalls (the “Project”).  Proceeds will also be used to fund capitalized interest through July 2022 when operations stabilize.

Cain Brothers’ placing of the bonds with one investor enabled CUSM to negotiate favorable and flexible covenants, terms and structure.  These negotiations, as well as favorable market conditions, facilitated an attractive 35-year final maturity yield of 6.73% for the tax-exempt bonds and a 17-year final maturity yield of 8.27% for the taxable bonds.

For more information, please contact:

Bart Plank

Managing Director
Co-Head Healthcare Public Finance
(212) 981-6915
bplank@cainbrothers.com