Dealmaker: Greystone Provides $216M in HUD Financing in Rhode Island

(Photo courtesy of Greystone)

Greystone, provided a $215.5 million FHA 242 GNMA financing for Care New England Health System, Providence, R.I.

Care New England Health System was advised by Cornerstone Health Advisors LLC; Greystone Managing Director Brett Southworth originated the transaction.

CNE operates a three-hospital system totaling 749 beds across Rhode Island. Loan proceeds will refinance CNE’s existing Series 2016B & C bonds and fund renovations and new construction projects including ambulatory facilities at Kent Hospital and renovations at Women & Infants Hospital.

The transaction is one of the largest FHA 242 loans in the program and features a first-of-its-kind co-borrower structure designed to preserve CNE’s existing obligated group, similar to structures commonly used in traditional markets.

Todd Conklin, executive vice president and chief financial officer of Care New England Health System, said the HUD structure was perfect for CNE’s needs. “In traditional markets, CNE was a sub-investment grade credit,” he said. “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. This loan will expand care in Rhode Island and improve our capital structure.”