Public Finance
Public Hospital District No. 1, Skagit County, WA
01/24
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$72.5 Million
Piper Sandler served as sole manager on Skagit County Public Hospital District’s (Skagit Regional Health or SRH) Series 2024 Bonds.
- The 2024 financing marks the largest financing in Skagit Regional Health’s history.
- With the proceeds from the 2024 issue, SRH will purchase a MOB in its northern market, construct a MOB in its southern market, and reimburse itself for capital spend related to outfitting of its new surgery center.
- In 2022, financial challenges led SRH to miss its debt service coverage covenant. With the anticipation of an issuance in late 2023 or early 2024, Piper Sandler helped SRH take a proactive approach in communicating with investors during the turbulent times including holding a voluntary call with investors.
- As part of the 2024 financing, Piper Sandler assisted SRH in creating materials and prepping for its rating meeting with Moody’s. The presentation helped SRH explain the reasons for the downturn in 2022 and the steps SRH had taken in 2023 to improve performance.
- Ultimately, Moody’s affirmed SRH’s rating of “Baa3” for the new $72 million issue.
- Piper Sandler worked with SRH to put together a thorough offering document for investors which explained the steps SRH had taken to restore its performance. As a result of the detailed offering document and proactive communication with investors, 36 different investors participated in the offering.
- The robust demand lowered final yields on the transaction and resulted in the financing pricing at a lower credit spread than the most recent comparable “Baa3” healthcare offering.
