Hammond Hanlon Camp LLC Advises Mercy Iowa City on $41.8 Million Refinancing, Sale of Medical Office Portfolio
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 Mercy Iowa City (“Mercy”) on a year-long, multiphase process to restructure and strengthen the system’s balance sheet. The series of transactions reduced overall debt while adding unrestricted liquidity and committed fixed-rate capital, leading in part to a rating upgrade from Moody’s Investors Service.
H2C began working with Mercy on a strategy to refinance the debt and strengthen Mercy’s capital position. As financial advisor, H2C’s primary goal was to secure new long-term, committed capital to refinance Mercy’s Series 2008 VRDBs, which would limit liquidity risk for the health system. A secondary objective was to maintain refinancing flexibility to take advantage of future rating upgrades when operating performance improved further.
In addition, H2C advised Mercy on two separate real estate transactions comprising seven medical office buildings totaling over 93,000 square feet. H2C conducted a competitive process that included contacting national, regional, and local investors and resulted in numerous competitive acquisition proposals for the sale/lease back transaction. The two transactions generated approximately $28 million, which Mercy used to reduce overall debt levels and create liquidity to use toward strategic initiatives.
“H2C ran a competitive credit selection process that met Mercy Iowa City’s goals of a long-term commitment and call flexibility while swiftly executing the sale of its medical office,” said Rich Bayman, Principal, H2C. “Our efforts not only positioned Mercy Iowa City for a credit upgrade, but also provided the Hospital with strong financial footing.”
ABOUT MERCY IOWA CITY
Mercy Iowa City is a 234-bed acute care hospital and regional referral center that draws patients from throughout southeast Iowa. The Hospital’s major services include heart and vascular care, including a cardiac catheterization lab; orthopedic care; maternity care; cancer care; digestive services; general surgery; wound and vein care; and 24-hour emergency care. Mercy Iowa City’s medical staff is comprised of more than 225 physicians representing all major medical specialties and most subspecialties.
Located near downtown Iowa City, the Mercy Iowa City campus includes the Hospital and a cancer center.
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 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 advisor on hundreds of transactions representing billions of dollars in value.
Hammond Hanlon Camp LLC conducts securities-related engagements through its wholly-owned subsidiary, H2C Securities Inc., member FINRA/SIPC.
For more information, visit h2c.com.
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