Hendrick Medical Center $303.610 Million Taxable Series 2021

February 3, 2021

Hendrick Medical Center is a not-for-profit hospital located in Abilene, Texas that provides comprehensive health care and related services through a 452-staffed bed hospital and its related facilities. On October 27, 2020, Hendrick acquired the assets and operations of Abilene Regional Medical Center and Brownwood Regional Medical Center from subsidiaries of CHS/Community Health Systems, Inc. Abilene and Brownwood added an additional 231 and 188 beds, respectively, addressing capacity issues at the main campus. Hendrick maintained a 60%+ market share in the Primary Service Area before the acquisition of Brownwood and Abilene, which increased to 90% post-acquisition.

In June 2020, Hendrick closed on a $222 million bridge loan with KeyBank to finance the acquisition of the assets and operations of Abilene Regional Medical Center and Brownwood Regional Medical Center. Cain Brothers served as Senior Manager for Hendrick’s Taxable Series 2021, the proceeds of which were used to refinance the bridge loan, reimburse prior costs of capital improvements, and refund a portion of the Series 2013 Bonds. The bonds were structured with a municipal bond insurance policy issued by Assured Guaranty Municipal Corporation, resulting in insured ratings of A2/AA to further enhance the strong, underlying A3/A ratings. In connection with the issuance, Hendrick was able to modernize its Master Trust Indenture and eliminate certain restrictive covenants, such as its liquidity and debt-to-capitalization ratio covenants, along with a debt service reserve fund requirement.

For more information, please contact:

Bart Plank

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

Zach Kau

Managing Director
Co-Head of Healthcare Public Finance
(415) 486-3422
zach.kau@key.com

Sean Gomez

Vice President
(646) 205-0274
sgomez@cainbrothers.com