Banks Ready $220 Mln Health Care Deal

  • 27 May 2001
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Charlotte, N.C.-based MedCath Corporation, an operator of cardiovascular hospitals and mobile cardiac labs, has tapped Deutsche Bank and Bank of America to lead an upcoming $220 million credit facility. David Crane, president and ceo, said that First Union and J.P. Morgan Chase will be secondary leads on the credit, which will run concurrent with an equity offering. Syndication of the deal will launch sometime in the summer once the initial public offering is completed, he said.

The loan will refinance the debt of some of the existing heart hospitals and finance the development of several new ones. Deutsche Bank and B of A were chosen based on an evaluation of expertise and reputation in the health care market, Crane said. "The ability to understand the company and what they can bring post-IPO, were extremely important," said Crane. Pricing was the least important factor, as most of the banks offered a similar spread, he added, though he was unable to divulge details until the IPO is completed.

MedCath owns and operates eight heart hospitals, and has begun development on two more, expected to open by late 2002. Four of the hospitals will borrow $110 million to repay indebtedness, but the remaining $110 million will be used for additional hospitals. Each loan will be separately documented and secured by the assets of the borrowing hospital, said Crane. Calls to officials at the banks involved were not returned by press time.

  • 27 May 2001

GlobalCapital European securitization league table

Rank Lead Manager/Arranger Total Volume $m No. of Deals Share % by Volume
1 Bank of America Merrill Lynch (BAML) 7,026 25 11.95
2 Citi 6,449 21 10.96
3 BNP Paribas 5,093 18 8.66
4 Barclays 4,040 11 6.87
5 Lloyds Bank 3,615 14 6.15

Bookrunners of Global Structured Finance

Rank Lead Manager Amount $m No of issues Share %
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1 Citi 120,318.45 348 12.72%
2 Bank of America Merrill Lynch 104,269.08 299 11.02%
3 Wells Fargo Securities 88,761.07 266 9.38%
4 JPMorgan 69,240.12 209 7.32%
5 Credit Suisse 51,560.77 157 5.45%