Logansport, Ind. (Sept. 17, 2013) – Logansport Memorial Hospital, located in Logansport, Ind., recently obtained $24.5 million in direct funding with the assistance of Lancaster Pollard, a national investment banking and mortgage banking firm headquartered in Columbus, Ohio, according to Vice President Chris Blanda, who led the transaction for the firm.
"Since 2011, our cash position and operating margin improved and our quality scores increased, giving us a competitive advantage," said Julia Berndt, chief financial officer for Logansport Memorial Hospital. "Our financial strengths afforded us several attractive alternatives. We were able to access debt financing at low interest rates, allowing Logansport Memorial Hospital to purchase equipment and make renovations that will enable us to maintain a competitive edge as we continue to serve our communities.
Logansport Memorial wanted to replace an expiring letter of credit that enhanced approximately $14 million in outstanding variable rate demand bonds with a more permanent financing structure. Additionally, the nonprofit hospital wanted to finance upcoming capital projects, including a new obstetrics suite, a CT scanner, and a new generator for the facility. After considering several options, Lancaster Pollard developed a credit profile and solicited the financial institution that would provide capital with the greatest flexibility.
The refunding consisted of tax-exempt variable rate bonds privately placed with a commercial bank and used to refund the 2004 enhanced variable rate demand bonds. In addition, Lancaster Pollard worked with the bank to put an interest rate swap in place to serve as an effective hedge against interest rate variability. As a result of the refunding, the hospital addressed its immediate capital needs and eliminated refinance risk of the existing debt.
Blanda said, "By working collaboratively with the leadership of Logansport Memorial, we were able to put in place a superior alternative to the hospital's previous debt structure along with providing funding for its immediate capital needs."
Logansport Memorial Hospital is an 83-bed, HFAP accredited, county-owned, regional medical center providing health care services to residents of Cass County and surrounding areas of north central Indiana.
Lancaster Pollard helps health care, senior living and affordable housing organizations expand and improve their services by providing financing solutions. The firm offers a full range of investment banking, mortgage banking and investment advisory services and has one of the largest groups of financial professionals dedicated to health care in the country. As a leading underwriter of bonds and mortgages, Lancaster Pollard has earned a reputation for delivering sound financial advice and the most cost-effective financing options available in the market.
For more information about the Logansport Memorial Hospital financing, visit www.lancasterpollard.com/hospital-financing.aspx.