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News Release: Adena Health System $83,270,000 Financing (Series 2019)

Cain Brothers is pleased to announce

Adena Health System $83,270,000 Financing (Series 2019)

June 25, 2019

Cain Brothers served as the Sole Manager in the public issuance of $83,270,000 of fixed rate revenue bonds on behalf of Adena Health System (“Adena”). Adena is a not-for-profit, three-hospital system headquartered in Chillicothe, Ohio. The System includes a 260-provider medical group and three hospitals: a 261-bed flagship, Adena Regional Medical Center, and two 25-bed critical access hospitals, Adena Greenfield Medical Center and Adena Pike Medical Center. In addition to the hospitals, Adena provides a variety of outpatient, clinic, physician and ancillary services at various locations in its broad nine-county service area. In FY 2018, the system generated over 12,000 admissions and over 758,000 outpatient visits.

Proceeds of the Series 2019 Project will be used primarily for the construction of a new 125,000 square-foot expansion of the System’s flagship Adena Medical Center (the “Project”).  The Project includes a 20-bed surgical inpatient nursing unit, space for six new operating rooms and related support space, and relocation of the Corporation’s Bone & Joint service line to the new facility, plus a 300-vehicle parking deck. The Project promises to reshape the Adena Medical Center campus and assist Adena in its efforts to form a regional rural healthcare hub.

The Series 2019 bonds were issued with a public bond rating of A3 (stable) and A- (stable) by Moody’s and S&P, respectively. Adena took advantage of its strong credit and the current market environment to refund its outstanding Series 2010 bank debt.

Strong marketing from the management team’s investor roadshow and favorable market conditions resulted in robust investor demand that facilitated a very attractive 30-year final maturity yield of 2.99% and an all-in cost of capital of 3.70%.

Cain Brothers, a division of KeyBanc Capital Markets (“Cain Brothers”), is a pre-eminent investment bank focused exclusively on healthcare.  We deliver innovative solutions and fresh ideas to our mergers & acquisitions, capital raising, and strategic and financial advisory clients from our offices across the country.   Our deep knowledge of the industry is matched with the knowhow needed to efficiently execute the most complex transactions of all sizes. With our exclusive focus on healthcare, we have an unobstructed view of this rapidly evolving industry that enables us to provide unique perspectives to our clients.  www.cainbrothers.com.

“Cain Brothers, a division of KeyBanc Capital Markets” is a trade name of KeyBanc Capital Markets Inc. Member FINRA/SIPC.

KeyBanc Capital Markets Inc. and KeyBank National Association are separate but affiliated companies.  Securities products and services are offered by KeyBanc Capital Markets Inc. and its licensed securities representatives.  Banking products and services are offered by KeyBank National Association.  Credit products are subject to credit approval. Copyright © 2019 KeyCorp.

For more information please contact:

Jim Cain
Managing Director
(212) 981-6955

Taaha Shaikh
Healthcare Public Finance
(212) 981-6903

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