Denver Health and Hospital Authority, CO

Case Study Photo

Pavilion M Project

Description of Scope:

Denver Health and Hospital Authority is the public safety net healthcare system for the City and County of Denver.  S.B. Clark Companies has acted as financial advisor to DHHA since 2001.  In 2009 the firm was retained to assist in the financing transaction for an addition to the Authority's medical facilities. The lowest cost approach to financing the Pavilion M project was a combination of the Authority issuing American Reinvestment and Recovery Act authorized RZFB to be leveraged as senior debt through a NMTC financing.

Project Size:

The $39.6 million financing construction of Pavilion M, the Authority's newest medical facility. The new 79,000 square foot four-story office building will offer:

  • A floor dedicated to adolescent psychiatric care, including 16 inpatient beds
  • An enrollment center with specialists to help patients apply for medical financial assistance
  • An outpatient kidney dialysis center operated by Fresenius Medical Care
  • An outpatient ambulatory surgery center

Services Performed:

S.B. Clark Companies assisted the Authority in procuring the necessary RZFB cap from the Colorado Commission on Higher Education (who had been legislatively assigned Colorado's RZFB allocation). The firm acted as financial advisor on the bond issuance, first managing a competitive process for selecting an underwriter and evaluating the pros and cons of a direct placement of the bonds rather than a publicly offered negotiated sale. Second, the firm evaluated the bond pricing and sale providing independent market verification.

Simultaneous with the bond issuance, S.B. Clark Companies assisted the Authority in structuring and placing the NMTC financing which included using the bond process as the leverage loan. The firm worked with the Authority to complete the necessary applications to secure NMTC allocation from three community development entities (CDEs) and managed a competitive process to place the NMTC equity investment with JP Morgan Chase. S.B. Clark Companies participated in review and development of the legal documentations to ensure the previously negotiated business points were fairly implemented while shepherding the financing partners to a successful closing.