MaineHealth $59.2 Million Bank Direct Purchase Financing
February 28, 2017
Cain Brothers served as sole investment banking advisor in the issuance of $59,164,249 Bank Direct Purchase Bonds. The Bonds were issued by the Finance Authority of Maine.
MaineHealth is a not-for-profit organization and collectively with its subsidiaries (the “System”) is the largest healthcare system in Maine, providing a full range of integrated healthcare services to patients in Maine and New Hampshire. MaineHealth operates acute care facilities, provides home care, community mental health services and long-term care, and owns and operates physician practices, skilled nursing facilities and senior living facilities through its subsidiaries.
The proceeds from the financing were used to fund the continued acquisition, design, development and installation of a System-wide shared electronic health record system (“SeHR”). The SeHR project began in November 2014, with the issuance of $94,845,570 of Bank Direct Purchase Bonds and a $6,654,429 Term Loan, for which Cain Brothers served as sole investment banking advisor. The program, installed by Epic, features an integrated suite of technology solutions to support healthcare delivery for all System members, providers and the communities MaineHealth serves. Cain Brothers conducted a competitive solicitation process for bank purchase proposals. Several bank proposals were received, each with various structuring alternatives that Cain Brothers helped MaineHealth evaluate. The financing was ultimately structured as a fully flexible draw down facility over a 24-month period, which then amortizes over the following 96 months. MaineHealth was able to take advantage of a low rate environment to achieve the attractive fixed rate costs of capital of 2.11% (tax-exempt) and 3.01% (taxable), with no debt service reserve fund.
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