Background
- Covenant Health (“Covenant”) is a Massachusetts not-for-profit corporation, which was formed in 1983 by the Sisters of Charity of Montreal, the “Grey Nuns.” It operates a multi-institutional system of health and human service providers, including acute and long-term acute hospitals, long-term care facilities, assisted living facilities, congregate housing and other health related organizations.
- As of December 31, 2016, facilities controlled, managed or affiliated with Covenant include 553 acute or long term acute hospital beds, 2,148 nursing home beds, 244 residential care beds, 492 assisted living units and 322 independent or congregate housing units. These facilities are located in Massachusetts, New Hampshire, Maine, Connecticut, Rhode Island and Pennsylvania.
Raymond James Role as Placement Agent
- Covenant Health has been a longtime client of Raymond James. In March 2017, with RJ serving as private placement agent on both transactions, Covenant successfully closed its $19,860,000 Series 2017 tax-exempt issue (the “Series 2017 Bonds”) and its $55,000,000 bank taxable term loan (the “Taxable Term Loan”) transaction.
- The multi-state tax-exempt composite Series 2017 Bonds were issued pursuant to four separate but similar bond trust indentures and consisted of: (i) $7,960,000 New Hampshire Health and Education Facilities Authority Healthcare System Revenue Bonds; (ii) $2,500,000 Massachusetts Development Finance Authority Revenue Bonds; (iii) $3,400,000 Maine Health and Higher Educational Facilities Authority Healthcare System Revenue Bonds – St. Joseph Hospital Issue; and (iv) $6,000,000 Maine Health and Higher Educational Facilities Authority Healthcare System Revenue Bonds – St. Mary’s Regional Medical Issue.
- Proceeds from the New Hampshire and Maine Series 2017 Bonds are being used for construction and renovation projects at Covenant’s three hospitals: St. Joseph Hospital (Nashua, NH), St. Mary’s Regional Medical Center (Lewiston, ME), and St. Joseph Hospital (Bangor, ME). Proceeds from the Massachusetts series are being used to refinance certain indebtedness and renovation projects related to a recently acquired nursing home in Massachusetts.
- Proceeds from the Taxable Term Loan will be utilized by the System to complete its Covenant Care Link electronic health records project. Covenant Care Link is a project to implement Epic, in a shared environment, for acute, ambulatory (physician practices), and Sunquest (laboratory).
Learn more about Raymond James Healthcare Finance Team
About Raymond James Healthcare Finance
The Healthcare Finance Group of Raymond James provides specialized healthcare investment banking expertise to clients nationwide through strategic advisory, capital markets, M&A, and real estate services. With veteran bankers in five offices across the country, Raymond James offers one of the largest and most qualified healthcare investment banking platforms with a focus on not-for-profit healthcare, completing over 300 client engagements since 2010.
Contact Information
Joseph Beck
Managing Director, Head of Healthcare Finance
212.314.0323
Michael Guernier
Managing Director
212.314.0317
Amanda Thompson
Senior Vice President
212.314.0311
The full content of this article is only available to paid subscribers. If you are an active subscriber, please log in. To subscribe, please click here: SUBSCRIBE
