DALLAS, April 19, 2018 – Dallas-based Preston Hollow Capital, an independent municipal finance company, announced today the closing of a $125,000,000 tax-exempt transaction providing financing for the El Centro Regional Medical Center (an affiliate of UC San Diego Health Care Network). The Medical Center is a municipal hospital, agency and enterprise operation of the City of El Centro, California located in the Imperial Valley of California.
This social impact investment provides the Medical Center with funds to modernize its facilities and ensure full preparedness for upcoming State of California seismic safety standards. The improvements include a new 29,000 square foot Ancillary Service Building, expansion of the Emergency Department, upgrades to the Medical Center’s boiler room including medical air and vacuum upgrades, and existing building upgrades to meet SPC-4D seismic compliance requirements. It also provides for refinancing of existing debt, including debt that was used to finance the construction of the new Medical Office Building that is scheduled to open in July 2018. KeyBanc Capital Markets served as the underwriter, Wulff Hansen & Co. served as financial advisor, and Norton Rose Fulbright served as bond counsel to the Medical Center. Preston Hollow Capital served as the sole investor on the financing.
“This transaction exemplifies how PHC can provide significant value to its municipal issuer clients by providing long-term funding for a complicated financing structure and credit,” said Charlie Visconsi, Managing Director at Preston Hollow Capital. “As Preston Hollow Capital grows and diversifies its investment portfolio, we’re able to offer many similar solutions to tax-exempt issuers across all asset classes.”
“This was a collaborative effort. PHC was fortunate to work with a highly capable group of business partners,” said Jim Thompson, Chairman and CEO of Preston Hollow Capital. “Our team thrives on complex transactions and the opportunity to reinforce our reputation for closing with speed and certainty.”
“This was never about bricks and mortar but it was about the community. We will get world-class facilities renovated or built to deliver top notch quality care and outcomes to the population of Imperial Valley. And that was the intent of the Mayor and the entire Board of Trustees when they joined hands with UCSD Health,” said Dr. Adolphe Edward, Chief Executive Officer of ECRMC.
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About Preston Hollow Capital
Preston Hollow Capital (www.phcllc.com) is the leading solution provider in municipal finance. Headquartered in Dallas, PHC is an independent municipal finance company with more than $1 billion in permanent equity capital and over $2 billion in investment capacity from a diverse investor base comprised of founding management, leading institutional investors including Stone Point Capital and HarbourVest Partners, and several prominent family offices. Preston Hollow Capital differentiates itself with its ability to deliver capital with speed, certainty and flexibility.
For information, contact:
Max Pickle, Preston Hollow Capital