posted on January 19, 2017
New York-based Hammond Hanlon Camp LLC (H2C) recently served as the financial advisor to St. Paul, Minn.-based HealthEast. (Photo courtesy of HealthEast)
ATLANTA — Hammond Hanlon Camp LLC (“H2C”), a healthcare-focused investment banking firm, served as the exclusive financial advisor to St. Paul, MN-based HealthEast in connection with its taxable debt issuance. The debt proceeds funded an unfunded pension liability on HealthEast’s pension plan, refinanced outstanding debt and financed new capital projects.
Due to federal mandates that have increased funding requirements on unfunded pension liabilities, HealthEast’s management team, with the help of H2C, analyzed the costs related to its frozen pension plan and concluded that it was economically beneficial to retire the plan as soon as possible. Simultaneously, HealthEast identified other capital needs and refinancing opportunities that could be included in a single, comprehensive, long term debt issue. Combining all of these financing needs, the H2C team was able to structure a new taxable loan that reduced HealthEast’s annual debt service obligations.
As the team prepared to commence the financing in August 2016, actuaries determined that funding the pension termination by the end of September would reduce the cost. With a financial incentive to close as quickly as possible, the experienced financing team was able to select a new banking partner, craft legal documents and close the financing in only 20 days.
“H2C’s proactive approach to the process allowed for a smooth closing in less than a month. They understood our objectives and were able to work with the banks and various legal teams to secure funding on very attractive terms and conditions in a very short period of time,” said Doug Davenport, SVP and Chief Financial Officer at HealthEast.
“Our knowledge of HealthEast helped us anticipate their goals and objectives and deliver an excellent result. Having their trust empowered us to manage the process on the expedited time frame” said Rich Bayman, Principal at H2C.
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
