News - 2008

Columbus, Ohio, May 6, 2008 — Red Capital Markets, Inc. (MEMBER FINRA/SIPC), the investment banking entity of comprehensive capital provider RED CAPITAL GROUP, recently completed a $28,000,000 tax-exempt revenue bond financing for the Lower Valley Hospital Association (LVHA) in Fruita, Colorado.

Founded in 1946, LVHA is a nonprofit provider of acute and long-term healthcare services. LVHA owns and operates Family Health West, which consists of an acute care critical access hospital, a rehabilitation and therapy clinic, an outpatient clinic, and a 120-bed nursing home. LVHA also owns and operates two assisted living facilities: The Oaks Assisted Living, a 90-unit facility, and The Willows Assisted Living, a 26-unit dementia secured facility. LVHA serves a population of approximately 18,000 residents in the Fruita, Colorado area, which is located 12 miles west of Grand Junction.

RED served as senior manager of the revenue bond underwriting that provided fixed rate financing with a 35-year final maturity. The non-rated bonds were structured without credit enhancement. The City of Fruita served as issuer of the tax-exempt bonds.

Bond proceeds will be used to construct a new 15-bed hospital, which will replace the existing 10-bed hospital facility and will better serve the area, which has experienced significant economic and population growth. The new hospital will contain approximately 40,000 square feet and will provide inpatient, outpatient and ambulatory care including surgical services, physical rehabilitation therapy, laboratory, radiology, pharmacy, and 24 hour emergency room services, enhancing and expanding the healthcare available in Fruita. In addition, LVHA will use the bond proceeds to restructure existing debt and make necessary physical improvements to the nursing home and assisted living facilities.

Dennis Ficklin, Chief Executive Officer of Lower Valley Hospital Association, stated, "We feel that the Red Capital team took the time to appreciate our culture and to become familiar with the unique facets of our growing area. Those involved led us through a complex process, solicited and incorporated our input, and delivered a financing package that will enable us to fulfill our health care commitment to this growing and vibrant community. In today’s unsettled financial market, we found Red Capital’s involvement and their ability to assemble the right resource team to be invaluable."

Eric J. Mestemaker, Director of Red Capital Markets, Inc., said, "Lower Valley Hospital Association is an organization with a strong mission and dedication to its vision of greater accessibility to healthcare for its community. The current credit environment in the U.S. capital markets meant that the financing faced some challenges. LVHA’s management had planned well, and collectively, our team was able to focus bond investors on the positive characteristics of the transaction, close on schedule and lock-in LVHA’s guaranteed maximum price contract. It was a pleasure to work with LVHA on this financing."