MaineHealth $212,700,000 Tax-Exempt Fixed Rate Bonds (Series 2020A)

August 13, 2020

Cain Brothers, a division of KeyBanc Capital Markets (“Cain Brothers”) served as the Financial Advisor for MaineHealth’s (“MH”) $212,700,000 Series 2020A tax-exempt public fixed rate revenue bonds issued through the Maine Health & Higher Educational Facilities Authority. MaineHealth is the largest private employer in the state of Maine and one of the largest healthcare providers in New England. The health system consists of; 10 member hospitals with 1,302 licensed beds, +400 ambulatory sites, 9 emergency room facilities, 400 licensed long-term care beds, and over 1,000 employed physicians. MH’s flagship hospital, Maine Medical Center (“MMC”), is Maine’s largest medical center and is based in Portland, ME.

The proceeds of the Series 2020A Bonds will be used to finance the continuing construction of a new seven-story hospital tower on its Maine Medical Center’s campus and to renovate its inpatient behavioral health unit at Southern Maine Health Care located in Sanford, Maine. The 2020A financing represents the second and final phase of MH’s $535 million Master Facilities Plan which began in 2006 as a large scale expansion and renovation of the MMC campus.

Despite a significant disruption in operations and suspension of elective surgeries due to COVID-19, Cain Brothers assisted MH with maintaining its current credit ratings of “A1” and “A+” by Moody’s and S&P, respectively. Cain Brothers also assisted with obtaining majority bondholder consent to waive MH’s debt service coverage ratio covenant for the current fiscal year to create operating flexibility in light of COVID-19.

Despite a volatile municipal market, MaineHealth was able to secure a 2.43% yield to call on the 30-year long bond which represents the lowest long-term fixed capital cost that the organization has ever entered into. The aggregate financing team of Cain Brothers and the Underwriting Syndicate led by Morgan Stanley helped to deliver a successful financing that will be instrumental to MaineHealth’s long range development goals and financial stability.

For more information, please contact:

Bart Plank

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