News - 2007

Columbus, OH, December 3, 2007 – Red Capital Markets, Inc. (MEMBER FINRA/SIPC) ("Red Capital"), the investment banking arm of comprehensive capital provider RED CAPITAL GROUP, recently closed a $12,810,000 tax-exempt revenue bond financing for Kit Carson County Health Service District in Burlington, Colorado. Red Capital served as the sole bond underwriter for the transaction.

The non-rated bond issue was structured without credit enhancement as two term bonds maturing in 2017 and 2034. The bonds were marketed and sold in the institutional bond market, which has been among the growing capital sources increasingly accessible to critical access hospitals.

Bond proceeds will be used to finance the expansion and renovation of Kit Carson County Memorial Hospital, a critical access hospital located in eastern Colorado, near the Kansas state line. Originally built in 1948, the hospital facility required an expansion to enhance its operational efficiency and to address changes in providing health care services. As a result of the financing, the hospital will construct a 27,000 sq. ft. addition to be used for patient care, imaging, and emergency services, and it will renovate a portion of the existing facility to provide new space for surgical and specialty services. Kit Carson County Memorial Hospital’s service area includes a population of approximately 8,650 residents.

Jim Jordan, Chief Executive Officer, Kit Carson County Memorial Hospital, said, "The services of Red Capital Group proved to be invaluable to the Hospital as they guided us through the financing process in a very unpredictable market environment. It was a pleasure to work with the Red Capital team of Charles Ervin, Eric Mestemaker, and Lee Delaveris. Their professional approach, understanding of the marketplace, and availability for questions and answers was a great comfort to Hospital management throughout the process. Financing is now secure and construction is now underway on our $14 million expansion and renovation project."

Charles C. Ervin, Managing Director, RED CAPITAL GROUP, said, "The Hospital prepared extremely well and diligently coordinated their project as it grew from an idea into a reality. Importantly, the Hospital assembled a strong team of advisors with specific experience in rural healthcare to assist with the project development and financing. Through the close teamwork of the Hospital administration and our bankers, we structured and closed a financing solution that allowed the Hospital to begin construction on schedule and within budget, despite difficult conditions in the financial markets. This transaction exemplifies the success that is achievable for many rural hospitals throughout the country."