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PRESTONBURG, KY (March 13, 2013) – Highlands Regional Medical Center, located in Prestonsburg, Ky., recently obtained $27.3 million in direct funding with the assistance of Lancaster Pollard, a national investment banking and mortgage banking firm headquartered in Columbus, Ohio. The financing team was led by Vice President Chris Blanda.
"The restructuring was incredibly beneficial to the hospital as it allowed us to remove the risks associated with our current debt structure, find a solid bank partner and retain the flexibility for more long-term financing in the future," said Jack Blackwell, chief financial officer for Highlands Regional Medical Center.
The nonprofit hospital wanted to replace expiring letters of credit enhancing a series of 2007 bonds. After considering several options, Lancaster Pollard developed a credit profile and solicited a purchaser that provided capital with the greatest flexibility.
The refunding consisted of a combination of taxable and tax-exempt variable rate bonds privately placed with a commercial bank and used to refund the 2007 enhanced variable rate demand bonds. In addition, Lancaster Pollard worked with the bank to keep an existing interest rate swap in place to serve as an effective hedge against interest rate variability.
Blanda said, "It was very satisfying to work with a dynamic management team that embraced the changing banking environment and acted collaboratively towards a successful financing in the face of a pending letter or credit expiration."
Highlands Regional Medical Center is a 184-bed hospital providing comprehensive health care services to a four-county region in Eastern Kentucky. Its clinics offer specialty services to people from more than 10 counties.
For more information about the Highland Regional Medical Center financing, visit www.lancasterpollard.com/hospital-financing.aspx.
About Lancaster Pollard
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.