Hospital operator Care New England Health System CNE has landed $215.50 million in financing that will be used in part to refinance debt and support property upgrades. The debt was provided under federal mortgage insurance known as the FHA Section 242 program, using Ginnie Mae.
Greystone Managing Director Brett Southworth originated the financing, with Cornerstone Health Advisors LLC advising CNE on the deal.
"In traditional markets, CNE was a sub-investment grade credit.
HUD insurance allowed CNE to refinance its outstanding debt and access substantial new money that would be expensive in traditional markets, but affordable with HUD insurance," Todd Conklin, executive vice president & CEO of CNE, said in a statement.
"This loan will expand care in Rhode Island and improve our capital structure. We are grateful for the support of our dedicated Board, and the teams at HUD, Cornerstone, and Greystone."
In part, CNE said it will use the proceeds to renovate Women & Infants Hospital and ambulatory facilities at Kent Hospital. Plus, the non-profit noted that funds will be allocated toward refinancing existing Series 2016B & C bonds, as well as other property upgrades and new developments.
Currently, CNE's portfolio includes three hospital systems with 749 beds — all of which are in Rhode Island.
Meanwhile, the healthcare sector has been shifting toward outpatient-focused care and away from centralized hospital towers. That's especially the trend defined in a recent Colliers sector employment analysis, which found ambulatory healthcare services added more than 50,000 jobs, compared with 18,300 in hospitals and 13,300 in nursing and residential care facilities, according to January hiring data.
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