Community Memorial Health System $366,170,500 FHA 242 / 223(F)
May 20, 2021
Cain Brothers served as the FHA Mortgage Lender on the $366,170,500 FHA 242 / 223(F) refinancing for Community Memorial Health System. The Series 2011 bonds were originally used to finance the construction of the new six-story 355,000 square foot Ocean Tower which commenced patient care in December 2018. The taxable structure of the FHA insured loan allowed the bonds to be advance refunded prior to the December 2021 call date. The financing significantly lowered CMHS’ cost of capital, generated $121 million in net present value savings for the Series 2011 refunding, and added $40 million in new funding for its system-wide EMR platform and near-term equipment needs. With this low fixed cost, facility-specific funding in place, CMHS is well positioned to continue its long-standing market leadership and growth as an independent provider while exploring a wide range of affiliation opportunities.
Community Memorial Health System is the only private, independent, non-profit healthcare organization in Ventura County California. CMHS has 2,700 Employees with 700 Physicians and 80 Residents in Training.
Community Memorial Hospital started as a single hospital in Ventura in 1901. CMHS was formed in 2005 through the merger of CMH (currently 250 licensed beds) and Ojai Valley Community Hospital (25-bed Critical Access Hospital). With the addition of the new Ocean Tower commencing patient care in December 2018, CMHS strengthened their long-standing role as the Hospital of choice in Western Ventura County for patients, providers and payers. The tower consists of private rooms for all patients, an Emergency Department with significantly increased capacity and new surgical suites.