News - 2007
071148
RED CAPITAL Structures and Sells $12.8 Million in Revenue Bonds for Colorado Critical Access Hospital
Proceeds to Finance Facility Expansion and Renovation
Kit Carson County Memorial Hospital
Burlington, Colorado
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. 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 underway on our $14 million expansion and renovation project."
Eric J. Mestemaker, Director of RED CAPITAL GROUP, said, "The Hospital prepared extremely well and diligently coordinated their project from start to finish. Critical to the project’s success, the Hospital assembled a strong team of advisors with specific experience in rural healthcare. Through the close teamwork of the Hospital administration and its advisors, Red Capital’s bankers structured and closed a financing that allowed the Hospital to begin construction on schedule and lock in an attractive interest rate for the life of the transaction, despite difficult conditions in the financial markets. This transaction exemplifies the success that is achievable for many rural hospitals throughout the country."
