FOR IMMEDIATE RELEASE
NEW YORK — June 4, 2020 — Hammond Hanlon Camp LLC (“H2C”), a healthcare-focused strategic advisory and investment banking firm, through its wholly owned subsidiary, H2C Securities Inc. (“H2C”), served as the exclusive financial advisor to Tower Health (“Tower”) in the issuance of $455.3 million in bonds. The transaction consisted of $44.7 million in tax-exempt, fixed-rate bonds (Series 2020A), $64.6 million in five-year tax-exempt put bonds (Series 2020B-1), $82.5 million in seven-year tax-exempt put bonds (Series 2020B-2), $72.9 million in 10-year tax-exempt put bonds (Series 2020B-3), and $190.7 million in taxable, fixed-rate bonds (Series 2020 Taxable) (collectively, the “Bonds”).
H2C created a plan of finance to:
- Refund $275 million of variable-rate bank debt that had mandatory tenders in the next four years
- Refund $44.7 million of Series 2009A-3 bonds that were currently callable
- Fund the purchase of St. Christopher’s Hospital for Children
- Refund $100 million of its lines of credit
- Terminate its fixed payer swaps
H2C’s plan of finance restructured Tower’s debt profile. The 2020 bonds had all-in true interest cost of 3.28 percent and an average life of 16.7 years. H2C also saved Tower 9 bps with its idea to include a non-callable structure for the serial bonds maturing in 11 and 12 years.
“H2C focused on leading a smooth and timely process, which resulted in deal completion just 15 weeks after deal kickoff,” said Elaine Yao, Managing Director, H2C. “Given the transaction closed just one month before the COVID disruption in the capital markets, timeliness was paramount. We are honored to continue to serve as Tower’s financial advisor and assist the System in its mission to provide high-quality care to communities across southeastern Pennsylvania.”
ABOUT TOWER HEALTH
Tower Health is a strong, regional, integrated healthcare provider/payer system that offers leading-edge, compassionate healthcare and wellness services to a population of 2.5 million people. Together, its six acute care hospitals and other entities provide a full range of medical care — from prevention, screenings, and education; to the latest clinical services and surgeries available; to rehabilitation. Tower also offers wellness programs and public health services that ensure its communities are the healthiest they can be. Tower Health’s caring, highly trained physicians and staff are committed to patient safety and satisfaction. For more information, visit mytowerhealth.org.
ABOUT HAMMOND HANLON CAMP LLC
Hammond Hanlon Camp LLC (“H2C”) is an independent strategic advisory and investment banking firm committed to providing superior advice as a trusted advisor to healthcare organizations and related companies throughout the United States. H2C’s professionals have a long track record of success in healthcare mergers and acquisitions, capital markets, real estate, and restructuring transactions, acting as lead advisors on hundreds of transactions representing billions of dollars in value.
Hammond Hanlon Camp LLC offers securities through its wholly owned subsidiary H2C Securities Inc., member FINRA/SIPC. For more information, visit h2c.com.
NEW YORK
623 Fifth Avenue
29th Floor
New York, NY 10022
212 257 4500
ATLANTA
3333 Piedmont Road
Suite 725
Atlanta, GA 30305
404 937 1350
CHICAGO
311 S. Wacker Drive
Suite 5425
Chicago, IL 60606
312 508 4200
SAN DIEGO
4655 Executive Drive
Suite 280
San Diego, CA 92121
858 242 4800
MEDIA CONTACT
Kelly Duong
858 242 4810
kduong@h2c.com
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
