News - 2011
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SEN-082411 09.07.11
Red Capital Markets, LLC Serves as Financial Advisor for Hoopeston Regional Health Center Transactions in Illinois
USDA Direct Loan Replaces 75 Skilled Nursing Beds; Note Financing Replaces/Renovates Hospital
Red Capital Markets, LLC (MEMBER FINRA/ SIPC), the investment banking arm of comprehensive capital provider RED CAPITAL GROUP, LLC, is pleased to announce it recently served as a financial advisor to Hoopeston Regional Health Center (“Hoopeston RHC”) to secure financing to replace its existing skilled nursing facility. Hoopeston RHC is a not-for-profit hospital, skilled nursing, and seniors housing operator in rural Eastern Illinois, located approximately 120 miles south of Chicago. The financing was secured and funded through the USDA’s Community Facilities Direct Loan program to acquire land and construct a new 75-bed skilled nursing facility.
In addition to the 75-bed skilled nursing facility, Hoopeston RHC operates a 25-bed Critical Access Hospital that was originally built in 1962, plus a 30-unit senior living community which was added in 1995. Hoopeston RHC serves a population of approximately 16,390 residents. The USDA Community Facilities Direct Loan has a 40 year amortization period and carries a 3.75% fixed interest rate. Proceeds from the USDA loan will be used for construction of a replacement 75-bed skilled nursing facility on a new senior housing campus located just north of Hoopeston, Illinois.
In addition to the USDA financing, Hoopeston RHC also expanded its affiliation with Carle Foundation Hospital and will bring its acute care and physician clinic facilities into the Carle organization as independent operating units. Along with this integration, Carle Clinic provided additional funding that will allow Hoopeston RHC to replace its existing surgery and recovery areas and renovate its emergency department and mechanical systems.
Harry Brockus, CEO of Hoopeston Regional Health Center said, “As a first time CEO, we turned to RED CAPITAL to assist us with our financing needs due to their extensive experience financing community hospitals through a variety of bond and governmental programs. Every step of the way, they were there with the right answers and made a daunting task seem simple. It was refreshing to work with a financing partner that was driven to find a solution to our financing needs.”
Jeffrey C. Fivecoat, Vice President of Red Capital Markets, LLC commented, “It was a pleasure to work with Harry and the team at Hoopeston Regional Health Center to secure the financing necessary to modernize and expand skilled nursing care in Vermilion County. After examining a variety of financing options, the USDA direct loan provided extremely attractive interest rates and financing terms, enabling the hospital to tackle a much needed full nursing facility replacement. This truly is a great outcome for the residents of Hoopeston and the surrounding area.”
Operating nationwide since its inception in 1991, RED CAPITAL GROUP, LLC is often recognized for its industry expertise, innovative and comprehensive structures, and consistently high lender rankings, such as having closed more FHA Multifamily & Healthcare loans during HUD FY-2010 than any other lender (and having closed more than $1.0 billion of FHA multifamily apartment loans in Federal Fiscal Year 2011 to date) and also having been the nation’s top Fannie Mae DUS lender for both multifamily and seniors. Red Mortgage Capital, LLC’s new Freddie Mac Seller/Servicer for Seniors designation, announced April 2011, rounds out the agency platform, which already includes Fannie Mae DUS® and FHA MAP and FHA LEAN lending for multifamily, seniors housing and health care properties.
RED CAPITAL GROUP, LLC is committed to being the nation’s premier provider of capital across the spectrum of asset classes.
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About Hoopeston Regional Health Center
Hoopeston Regional Health Center is a Critical Access Hospital in Illinois serving Hoopeston, Vermilion County and the surrounding area. Employing more than 250 staff members, with 18 physician and mid-level providers, the 25 bed HRHC is committed to providing quality, dependable health services.
About Carle
Based in Urbana, Ill., The Carle Foundation is the not-for-profit parent company of an integrated network of healthcare services. At its core are the Carle Foundation Hospital, Carle Physician Group and Health Alliance Medical Plans. The 325-bed regional care hospital has achieved Magnet® designation, the nation's highest honor for nursing care. The Mills Breast Cancer Institute, Carle Cancer Center, Carle Spine Institute and Carle Heart and Vascular Institute bring additional advanced diagnostic and treatment options.
For more information, contact:
RED CAPITAL GROUP
Linda L. Mackov,
Senior Managing Director
(614) 857-1404
llmackov@redcapitalgroup.com
For more information on this transaction,
please contact:
Red Capital Markets, LLC
Jeffrey C. Fivecoat, Vice President
Columbus, OH
(614) 857-3159
jcfivecoat@redcapitalgroup.com
