Sanford Health $655,006,000 Taxable Bridge Loan

July 8, 2019

Cain Brothers served as Structuring and Sales Officer for a $655,006,000 taxable bridge loan for Sanford Health, a long-time client of Cain Brothers.  Sanford, an ‘A1’/‘A+’ rated health system headquartered in Sioux Falls, SD owns or manages 40 hospitals in western Minnesota, Iowa and the Dakotas with a service area covering more than 250,000 square miles. Sanford employs over 24,000 full time employees, including approximately 1,450 physicians. For the 2018 fiscal year Sanford reported revenues of $4.8 billion and $2.7 billion in net assets.

In January 2019, Sanford affiliated with Evangelical Lutheran Good Samaritan Society (ELGSS) assuming approximately $630 million of tax-exempt bonds and other liabilities. The addition of ELGSS provides Sanford a post-acute care presence in 24 states at 375 facilities. While the use of tax-exempt bond proceeds is no longer permitted to advance refund outstanding tax-exempt debt due to the terms of the 2018 Tax Cuts and Jobs Act, Sanford plans to refinance the bridge and other ELGSS debt obligations through the sale of tax exempt and taxable bonds by the end of 2019 in accordance with the acquisition financing provisions of the Jobs Act. Cain Brothers will serve as sole senior manager on this permanent financing process.

This transaction, structured and closed over a very condensed time frame, represents one of the largest non-syndicated bridge financings ever completed for a not-for-profit health care entity.  In addition to the bridge loan structuring services, Cain Brothers served as the Bidding Agent on four defeasance escrows and assisted in the termination of four reinvestment products.

For more information, please contact:

Bart Plank

Managing Director
Co-Head Healthcare Public Finance
(212) 981-6915