MaineHealth embarks on Phase I of its Master Facilities Plan with $175,260,000 public fixed rate financing

July 18, 2018

Cain Brothers, a division of KeyBanc Capital Markets (“Cain Brothers”) served as Financial Advisor to Maine Medical Center (“MMC”) in connection with its Series 2018A&B public fixed rate bond financing totaling approximately $175.26 million. The bonds were issued in two tranches; $164.33 million of tax-exempt Series 2018A Bonds and $10.93 million of taxable Series 2018B Bonds. Maine Medical Center is the ultimate obligor of the debt which is supported by a guaranty from its parent, MaineHealth (“MH”). MaineHealth, headquartered in Portland, Maine, is an integrated health system consisting of nine member hospitals with over 1,200 licensed beds and 990 employed physicians. It is the largest private employer in the state of Maine and one of the largest healthcare providers in New England.

The Series 2018A&B Bonds were primarily used to finance a portion of MH’s Master Facilities Plan at its flagship Maine Medical Center campus in Portland which includes; an expansion and renovation of its East Tower building and visitor parking garage, the construction of a new employee parking garage, and the renovation and acquisition of existing and new administrative offices.

Cain Brothers worked alongside MMC and MH management and the underwriting team to appropriately structure the bonds while simultaneously mitigating risks related to the financing and project. The firm’s underwriting desk advised on the pricing levels of the fixed rate bond issue, participated in pre-pricing calls, presented comparable recent bond issues and detailed general market conditions that enabled MMC to achieve a very attractive all-in borrowing cost of approximately 4.07% with a 30-year final maturity.

Additionally, Cain Brothers served as Bidding Agent on behalf of MMC in relation to the reinvestment of a portion of the Series 2018A&B bond proceeds. A total of $153.2 million of bond proceeds, representing a significant portion of the project and capitalized interest accounts, was reinvested into a competitive Flexible Repurchase Agreement that will maximize permitted investment earnings of the indentured funds.

For more information, please contact:

Bart Plank

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