Maryland Health and Higher Educational Facilities Authority
Greater Baltimore Medical Center Issue
Series 2021 A & B
GBMC is a private, nonprofit corporation that owns and operates a regional medical center with 374 licensed beds situated on an approximately 72-acre campus in Towson, Maryland. GBMC serves a population of more than 825,000 residents and handles more than 20,000 admissions (including births) and over 57,000 emergency room visits annually.
GBMC is undertaking two strategically important capital projects: (1) the expansion of its main hospital facility with a three-story, 60-room addition to provide new, private, state-of-the-art inpatient rooms as well as expanded patient, family, and staff support space and (2) the construction of a new parking garage and medical office building, which will be home to the Sandra and Malcolm Berman Cancer Institute at GBMC, consolidating all of GBMC’s cancer care services for the convenience of its oncology patients.
GBMC engaged Wye River early in the Project development process to review GBMC’s capital structure, to help assess its capacity to support additional debt to finance the Project, to identify viable financing alternatives and structures and to evaluate what impact, if any, a financing might have on GBMC’s credit ratings. As Project planning progressed and the groundbreaking edged closer, Wye River conducted competitive financing solicitations for both commercial banks and underwriting firms, the results of which informed GBMC’s decision making regarding the ultimate financing structure. The final Plan of Finance for the Project included (1) $104 million of publicly offered fixed rate bonds with a 30-year final maturity, an amortization structure that “wraps” around GBMC’s existing debt and a couponing structure intended to produce the lowest possible interest cost, and (2) $25 million of variable-rate drawdown tax-exempt bank financing, which will be used to “bridge” the timing divide between Project construction expenditures and the receipt of capital campaign proceeds.
The financing closed on schedule in September 2021.