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HOSPITAL & HEALTH SYSTEMS

HEALTHCARE FINANCE SERVICES

HEALTHCARE INVESTMENT BANKING

Ziegler has achieved a unique position within the healthcare sector due to our ability to implement financing solutions that incorporate a variety of financial tools to meet our client’s needs. Our firm has developed a suite of innovative products and services that accommodate the most complex financing for virtually every type of for-profit and not-for-profit hospital and health system.

We value relationships. At Ziegler our primary goal is to build and maintain a strong and trusted relationship with each client based on the delivery of services, which go beyond the financing itself, and enables clients to meet their goals. The effectiveness of our team is evident in our plan of finance that pursues the lowest cost of capital, regardless of the market movements and a trusted advisor relationship that extends beyond the financing.

 

Capital Finance. We can help you obtain cost-effective financing solutions for the renovation, expansion, or replacement of existing facilities, as well as restructuring or refunding existing indebtedness.

Credit Enhancement. We are versed in all forms of credit enhancement, which include bank letters of credit, bond insurance, FHA insurance or using the strength of a sister organization in order to provide the credit necessary to complete a complicated transaction.

Credit Structures & Instruments. Our breadth of experience in healthcare financing has enabled us to develop a variety of innovative credit structures to successfully execute even the most complex financing.

HEALTHCARE CORPORATE FINANCE

Ziegler's Corporate Finance team is focused on delivering best-in-class advisory and financing solutions for companies and organizations across the healthcare industry. In our core practice areas of healthcare services, information technology, hospitals and senior living, Ziegler is one of the most active M&A firms offering innovative sell-side, buy-side, recapitalization/restructuring, equity private placement and strategic partnering services.

Over the years, Ziegler has provided many healthcare clients with the strategic advice necessary to successfully navigate the complicated process of identifying, evaluating and executing mergers, acquisitions and divestitures as well as strategic options assessments. Ziegler offers comprehensive transaction advisory services ranging from sell-side and buy-side representation to valuation and fairness opinions.

 

Sell-side Advisory. Ziegler provides exceptional sell-side advice to both private and public firms seeking to sell their company or divest assets/business segments with senior level resources and personalized attention dedicated to each transaction.

Buy-side Advisory. We have an extensive track record advising clients on purchase transactions. Our experience enables us to help you identify appropriate targets, perform an effective valuation analysis, structure an offer, and conduct skillful negotiations leading to a successful close.

Capital Raising. Ziegler’s relationships with healthcare-focused private equity, venture capital, and lending organizations enable us to identify the right capital partner to support your company’s growth objectives, acquisition-related financings, recapitalizations, and shareholder restructurings.

Corporate Restructuring & Workout Assignments. We routinely advise companies, lenders, and institutional investors in restructuring and workout assignments for distressed situations. We have the tools to help you succeed.

Strategic Advisory Services. We can help you access a wide range of debt and equity capital including HUD, Fannie Mae, Freddie Mac, conventional financing, REITs, and institutional equity. Our years of experience allow us to provide sound expert advice on strategic alternatives and optimal capital structure.

Fairness and Valuation Opinions. Ziegler can provide you and your board of directors with a fairness and valuation opinion based on a thorough, in-depth analysis using valuation methodologies appropriate for your company and its market.

Strategic Partnerships & Customer Development Initiatives. With access to decision makers across multiple sectors in the healthcare industry, we are in a unique position to provide you with referrals that open the doors to new business opportunities, including strategic partnerships, customer introductions, and other growth initiatives.

FHA HEALTHCARE

Ziegler Financing Corporation (ZFC) combines Ziegler’s senior living industry knowledge, corporate finance advisory expertise and FHA/HUD-insured mortgage products to deliver optimal financing solutions for clients. With unparalleled resources and knowledge, our dedicated team of FHA lending experts can arrange FHA-insured fixed-rate debt for for-profit, not-for-profit, and community-based organizations.

ZFC helps hospitals and health systems access affordable financing for capital projects using FHA Section 242. Clients can range from small hospitals to some of the nation's most prestigious teaching medical centers. FHA insurance enables clients to enhance their creditworthiness because the debt is backed by the full faith and credit of the U.S. government. FHA insured hospitals usually obtain the lowest interest rates available to their segment of the market.

 

FHA insurance can be used for new or existing hospitals, in conjunction with the refinancing of existing debt or to finance the purchase of existing facilities.

  • Construction financing
  • Modernization
  • Remodeling
  • Equipment
  • Expansion

Program Features

  • Borrowers can be not-for-profit, for-profit or publicly owned (governmental) facilities
  • Combined construction and permanent financing is approved at the same time
  • Maximum loan to replacement cost is 90%; maximum loan term is construction period plus 25 years with full amortization
  • The loan is pre-payable, assumable and non-recourse
  • The loan requires a projected 1.40x debt service coverage
  • Loans may be funded with tax-exempt bonds or taxable Government National Mortgage Association (GNMA) Securities
  • Projects must satisfy the state’s requirements for CON, licensure and operating standards
  • Construction and rehabilitation costs are subject to Davis-Bacon Wage requirements
  • Refinancing existing debt is possible without new construction component