Raymond James serves as Financial Advisor to Essentia Health on the successful completion of its $723 million Comprehensive Plan of Finance.
Essentia is a $2 billion revenue physician-led, integrated delivery network, including 15 hospitals in Minnesota, Wisconsin, North Dakota and Idaho with 1,198 licensed beds, 2,300+ providers and one of the first two Level 3 accredited ACOs nationally. Following the execution of a multi-year expansion plan in its Western and Central market operations, in 2018 Essentia focused on its East market (Duluth, MN), where a replacement hospital facility was long-needed. The Series 2018 bonds were issued to (i) finance a state-of-the-art medical campus transformation project; (ii ) refinance existing variable rate bank debt to reduce risk in the debt portfolio; and (iii) refinance fixed rate debt for savings. Essentia elected to accelerate its bond financing of approximately $750 million to ensure project funding and capitalize on attractive market rates.
The Series 2018A and 2018B bonds financed Essentia’s Vision Northland Project, a state-of-the-art medical campus transformation project to construct a replacement hospital facility in Duluth, MN, and refinanced several series of existing debt to either reduce risk in the debt portfolio or achieve savings. Essentia elected to accelerate its bond financing to ensure project funding and capitalize on attractive market rates.
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 six 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 approximately 250 client engagements in the last five years. For more information, please visit raymondjames.com.
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