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Santa Clarita CA
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Today in
S.C.V. History
March 18
1919 - Swall Hotel in Newhall burns down (corner Main & Market) [story]

[Chicago] – Ziegler, a specialty investment bank, is pleased to announce the successful closing of the $109,625,000 Series 2017 tax-exempt, new money-refunding, tax exempt bond issue through California Public Finance Authority for Henry Mayo Newhall Hospital (HM), a Ziegler client since 2013. HM is a not-for profit health system that currently staffs 238 general acute care beds and generates over $300 million in annual operating revenue with operations in Valencia, 35 miles north of Los Angeles.

Series 2017 new money bond proceeds, along with HM equity and charitable donations, will be utilized to construct a new patient tower with capacity for up to 142 new beds to meet the demands associated with a growing population and facilitate an all private room configuration for the high-end community HM serves. The remaining proceeds will be used to refinance a bank placement which eliminates capital structure risk at an opportune time. Ziegler first assisted HM with the only MTI secured issue to be secured on parity with Cal Mortgage bonds outstanding since the program’s inception in 1968 with a 2013 multi-lender, private placement. In recognition of its surging credit profile and in order to extinguish certain creditor rights, Ziegler helped Henry Mayo exit the Cal Mortgage program, which had been a good historical capital partner, with an Assured Guaranty (“AG”) Series 2014 insured public bond issue becoming the first and only AG insured hospital revenue bond issue rated BBB- without a debt service reserve fund requirement. Despite the increase in leverage associated with the Series 2017 Bonds, Ziegler assisted HM with an affirmation of its existing BBB- rating from S&P and a new BBB- rating from Fitch.

“The last four plus years have been very interesting from a financing perspective. Our relationship with Ziegler has allowed us to completely restructure our long-term debt to take advantage of our strong cash flow and patient demand in the Santa Clarita Valley. Having an investment banking firm that can think out of the box and work with the individual client to insure the best possible outcome was important not only to me but to the entire leadership team including our Board of Directors and Finance committee,” commented Bob Hudson, Senior Vice President and Chief Financial Officer for HM.

Mike Quinn, Managing Director in Ziegler’s Healthcare finance practice, commented, “Henry Mayo offers an outstanding credit profile with very unique upside for its capital partners. The hospital’s payor mix includes significant commercial insurance and managed care reimbursement which, along with the market’s favorable demographic trends and Henry Mayo’s enviable position as the only hospital in the Santa Clarita Valley, increases the probability of very strong future cash flow consistent with its recent trend. This recent trend has enabled material strengthening of Henry Mayo’s liquidity position to offset the additional leverage associated with the Series 2017 Bonds. The Board and the Executive Team, rather than relying on its favorable market and competitive position, have instilled a metric driven culture of accountability to propel the organization to new heights. The completion of the patient tower will ensure that the healthcare needs of the local community are met for decades to come. Ziegler was privileged and very pleased to assist Henry Mayo with this critical financing and the Series 2013 and 2014 tax-exempt transactions.”

Ziegler is a premier investment bank to community and regional healthcare providers, and is the fourth-largest lead managing underwriter of healthcare issues, according to Thomson Financial Securities Data. For over 80 years, we have been assisting these organizations with creative, tailored financial solutions for their capital needs. Specializing in transactions that cover the broad spectrum of healthcare management – from hospitals, physician groups, managed care companies and senior living facilities to post-acute service organizations – Ziegler offers an array of services including investment banking, financial risk management, merger and acquisition services, as well as capital and strategic planning.

For further information on the structure and use of this issue, please see the Official Statement located on the Electronic Municipal Market Access system’s Document Archive.

For more information about Ziegler, please visit us at http://www.Ziegler.com.

About Ziegler

Ziegler is a privately held investment bank, capital markets, wealth management and proprietary investments firm, celebrating its 115th anniversary this year. Ziegler is ranked No. 1 in the country in healthcare/senior living underwriters by issuance and No. 4 by par amount (Thomson Reuters, 2016), and is ranked in the top 20 municipal underwriters in the country by volume (Bloomberg, 2016). Specializing in the healthcare, senior living, education and religion sectors, as well as general municipal and structured finance enables Ziegler to generate a positive impact on the communities it serves. Headquartered in Chicago with regional and branch offices throughout the United States, Ziegler provides its clients with capital raising, strategic advisory services, equity and fixed income sales & trading, wealth management and research. To learn more, visit http://www.ziegler.com.

Certain comments in this news release represent forward-looking statements made pursuant to the provisions of the Private Securities Litigation Reform Act of 1995. This client’s experience may not be representative of the experience of other clients, nor is it indicative of future performance or success. The forward-looking statements are subject to a number of risks and uncertainties, in particular, the overall financial health of the securities industry, the strength of the healthcare sector of the U.S. economy and the municipal securities marketplace, the ability of the Company to underwrite and distribute securities, the market value of mutual fund portfolios and separate account portfolios advised by the Company, the volume of sales by its retail brokers, the outcome of pending litigation, and the ability to attract and retain qualified employees.

Comment On This Story
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  1. Steve Mendenhall says:

    I live in Castaic. I am a paraplegic with Spina Bifida, and I don’t drive. I am a KAISER Patient, and whoever takes me to the hospital has to drive some thirty miles to the nearest hospital.
    After living in the area for over fifteen years,
    I am still waiting for a KAISER Hospital to be built near me. Meanwhile, yet more money is being spent on this hospital. It doesn’t seem right to me.

  2. Janet Eminian says:

    I can’t say enough good things about Henry Mayo Hospital. My husband was hospitalized there for one month at the end of 2016.
    The care he received was exceptional! Once he was transferred from the I.C.U to the D.O.U., our only complaints were the small, crowded double-occupancy rooms -and- the close proximity of the nurse’s stations to the rooms- all of which contributed to the noise factor…

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