NorthBay Healthcare $35 Million Financing
August 24, 2016
Cain Brothers served as Financial Advisor in the public issuance of $34,895,000 fixed rate refunding revenue bonds (Series 2016 A) on behalf of NorthBay Healthcare. NorthBay provides healthcare services primarily to residents of Solano County, CA, through an integrated healthcare delivery system that includes two acute care hospitals, five outpatient medical clinics, a home care agency, a hospice program, and an occupational health program.
Proceeds from the Series 2016 A Bonds will be used to refund NorthBay’s $39.58 million Series 2013 A bonds.
Cain Brothers advised on the pricing levels of the fixed rate bond issue, participating in pre-pricing calls, presenting comparable recent bond issues, and detailing general market conditions that enabled NorthBay to take advantage of the historically low interest rate environment and achieve an all-in borrowing cost of approximately 2.56% for an average life over seven years. A structuring nuance recommended by Cain Brothers that helped to lower the borrowing cost was structuring the 2027 and 2028 maturities as non-callable to produce a lower yield to maturity. These two maturities generated the most investor interest of all of the serial bonds in the issue.