Riverside Health System $168,555,000 New Money and Refunding Financings

September 28, 2017

Cain Brothers served as placement agent to Riverside Health System (“Riverside”) in connection with three financings totaling approximately $168.6 million. Riverside, headquartered in Newport News, Virginia, is an integrated health system consisting of acute care hospitals, senior housing facilities and over 500 employed physicians.

The proceeds of the new money borrowing were used to fund renovations, expansions, and capital improvements at multiple facilities across Riverside’s network, including Riverside Regional Medical Center and Riverside Walter Reed Hospital. The proceeds of the refunding issue were used to refund Riverside’s outstanding Series 2011A and Series 2011C direct bank purchase debt.

Cain Brothers employed a combination of private placements and a direct bank purchase to complete the financings. In order to maximize Riverside’s flexibility in the use of proceeds, $50 million of the borrowing was structured as a taxable private placement with a 14-year term. Another $50 million was structured as a tax-exempt private placement with a 29-year term. Lastly, $68.6 million was structured as a variable rate direct bank purchase with a 10-year term, which allowed Riverside’s to extend its initial put date and reduce its interest expense.

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