Higher Education Finance Quarterly

On June 26, 2025, KeyBanc Capital Markets (KBCM), as Sole Manager, and the City of Huber Heights, Ohio (the City), successfully closed a $56.2 million Various Purpose Notes, Series 2025 (General Obligation – Limited Tax) (the Notes) transaction. Proceeds received from the sale of the Notes will be used to 1) retire, with Note proceeds and cash in hand, Notes issued for the purpose of paying the costs of improving (a) the public works department, (b) city council facilities, (c) fire station facilities, (d) the Meadows infrastructure project, (e) public improvements; and (2) providing funds for City Hall renovations and the design of an indoor music center for community use.

Located just minutes from Wright-Patterson Air Force Base and Dayton’s commercial center, Huber Heights is home to over 800 businesses, from high-tech manufacturers to distributors. The residents of Huber Heights are spread comfortably over 25 square miles. Just over 38,000 residents of diverse backgrounds earn an average income of more than $69,000. The City is a community that provides an outstanding business environment that supports a high quality of life and an affordable cost of living coupled with abundant recreational and cultural amenities. A host of nationally acclaimed institutions of higher learning are within minutes of the City, including the Air Force Institute of Technology, several acclaimed universities (Cedarville, the University of Dayton Wilberforce, Wittenberg, and Wright State, among others). Together these institutions offer everything from advanced degrees to executive leadership training and lend to robust community amenities.

On July 24, 2025, KeyBanc Capital Markets (KBCM) successfully advised Omni Glass & Paint, LLC (Omni or the Company), a portfolio company of Merit Capital Partners (Merit), on its sale to The Sterling Group Foundation Fund (Sterling). KBCM was selected to serve as Omni's Exclusive Sell-Side Advisor based on its industry-leading specialty distribution investment banking practice, long history of transaction success within the glass/window industry, and track record of successful M&A execution.

Omni is a leading provider of a broad range of glass and paint products and services. Founded in 1967, Omni provides custom glass, panels, contract glazing, and specialty coating solutions to general contractors and manufacturers, primarily in Wisconsin. The Company operates through five divisions including Glass, Paint, OEM, Residential, and Tempering. Omni is headquartered in Oshkosh, Wisconsin, and has six facilities throughout the state.

Headquartered in Chicago, Merit is a private equity investment firm with $2.7 billion of capital under management. Founded in 1993, the firm focuses on providing equity and subordinated debt to lower middle market companies. Merit partners with business owners, management teams and independent sponsors to support management buyouts, recapitalizations and growth financings across the manufacturing, distribution and services sectors.

Headquartered in Houston, Texas, The Sterling Group is a leading private equity and private credit investment firm with $9.4 billion of assets under management. Founded in 1982, the firm focuses on lower middle market companies and partners with management teams to strategically and operationally improve businesses operating within basic manufacturing, distribution, and industrial service industries. The Foundation Fund is a 2023 vintage buyout fund with over $635 million of committed capital.

On July 8, 2025, KeyBanc Capital Markets (KBCM) successfully advised Kodiak Interiors Group, LLC (Interiors or the Company), the interiors division of Kodiak Building Partners, Inc. (Kodiak), a portfolio company of Court Square Capital Partners (Court Square), on its sale to a Private Investor Consortium. KBCM served as Interiors’ Exclusive Sell-Side Advisor based on its industry-leading Industrial Building Products practice, proven M&A execution capabilities and relevant carveout transaction experience.

Interiors is a leading national distributor of interior building products and provider of installation services for homebuilders and repair & remodel contractors. The Company operates 35+ locations in Arizona, Colorado, Pennsylvania and Texas, offering appliances, flooring, cabinets and other interior products.

Kodiak, headquartered in Englewood, Colorado, is a national building materials distribution platform founded in 2011, employing more than 6,500 team members across 29 states. Kodiak serves local and national customers across the residential construction, repair & remodel, commercial and infrastructure construction markets. Their diverse product offering includes lumber and building materials, construction supplies, gypsum and interiors products.

Court Square is a New York-based private equity investment firm that has completed more than 245 platform acquisitions. Court Square focuses on investing in middle-market Industrials, Business Services, Healthcare and Tech & Telecom companies, partnering with founders, families and management teams to drive long-term value and establish market leadership.

Cain Brothers, a division of KeyBanc Capital Markets, served as financial advisor to Beacon Health System in its acquisition of Ascension Southwest Michigan, including the Borgess Health System.

On behalf of Beacon, Cain Brothers proactively approached Ascension about divesting Borgess Health. Following numerous discussions, the assets were formally marketed and the persistence of the Cain Brothers team, along with a thoughtful RFP response, positioned Beacon as the best partner. The transaction closed on July 1, 2025.

Founded in 2011, Beacon Health has grown to a nine-hospital not-for-profit system in northern Indiana and southwest Michigan. Beacon is headquartered in South Bend and employs more than 8,000 associates throughout the region at over 74 different locations.

Borgess is a not-for-profit health system consisting of four hospitals, 35 outpatient clinics, and one ambulatory surgery center. The largest facility is a 422-bed acute care hospital in Kalamazoo. Borgess has more than 2,700 associates, including 261 providers.

Ascension is one of the nation’s largest not-for-profit health systems, with approximately 99,000 associates, 23,000 aligned providers, 94 wholly-owned or consolidated hospitals, and ownership interests in 27 additional hospitals. Ascension also operates 30 senior living facilities and a variety of other care sites offering a range of services.

Cain Brothers and KeyBanc Capital Markets served as Joint Lead Arranger and Joint Bookrunner on the transaction due to its industry expertise and long-standing relationship with the Company, as well as leading debt capital markets capabilities.

Radiology Partners is a leading physician-owned and -led radiology practice, offering 24/7/365 on-site and remote diagnostic and interventional services to a diverse base of hospital and outpatient imaging facility customers across all 50 states. The Company focuses on clinical value, technology enablement and outstanding service, offering technology, AI tools, and “around the clock” subspecialty coverage to its customers. Radiology Partners is a partner of choice for leading US health systems, serving all top 10, and 17 of the top 20 largest systems in the country.

NEA is a global venture capital and growth equity firm focused on helping entrepreneurs build transformational businesses across multiple stages, sectors, and geographies. With more than $26 billion in cumulative committed capital since the firm’s founding in 1977, NEA invests in technology and healthcare companies at all stages in a company’s lifecycle, from seed stage through IPO. The firm’s long track record of successful investing includes more than 230 portfolio company IPOs and more than 390 mergers and acquisitions.

Whistler is a Nashville-based private equity firm focused on growth equity and growth buyouts in the healthcare industry and related tech-enabled services verticals. With over $1.8 billion in assets under management, the firm partners with world class leadership teams, supporting them with strategic resources and capital, with a particular focus on deploying or expanding investments in technology-enabled and data-driven opportunities.

Cain Brothers, a division of KeyBanc Capital Markets, served as exclusive advisor to Allied OMS on its minority recapitalization by 65 Equity Partners, while KeyBanc Capital Markets served as exclusive debt advisor to raise senior debt facilities.

Leveraging a longstanding relationship with management and expertise in the dental sector, Cain Brothers worked with the Company’s leadership to pursue a strategic partnership that aligned with Allied OMS’ strategic vision. The investment by 65 Equity Partners positions the Company for its next phase of growth while preserving its doctor-led model and operational independence.

In parallel, KBCM advised on a new senior credit facility to refinance the Company’s debt facility and provide capital to support continued expansion. The new financing is comprised of a $165 million Term Loan, a $20 million Revolving Credit Facility and a $60 million Delayed Draw Term Loan.

Allied OMS is a doctor-owned, -led and -governed MSO that partners with oral and maxillofacial surgery practices across the U.S. Combining the autonomy of private practice with the scale and sophistication of institutional support, Allied OMS empowers surgeons to lead the future of their specialty. The Company currently supports surgeons in 50+ locations and maintains doctor leadership across all major committees and its Board of Directors.

65 Equity Partners is a global investment firm that supports founders in their growth journey. With $3.3 billion in funds under management and a mandate to invest in entrepreneur-led businesses, 65EP backs companies across healthcare, technology, consumer, industrials, and business services. The firm is backed by Temasek and has offices in Singapore, London, Paris, San Francisco, and New York.

Cain Brothers, a division of KeyBanc Capital Markets, served as exclusive advisor to Allied OMS on its minority recapitalization by 65 Equity Partners, while KeyBanc Capital Markets served as exclusive debt advisor to raise senior debt facilities.

Leveraging a longstanding relationship with management and expertise in the dental sector, Cain Brothers worked with the Company’s leadership to pursue a strategic partnership that aligned with Allied OMS’ strategic vision. The investment by 65 Equity Partners positions the Company for its next phase of growth while preserving its doctor-led model and operational independence.

In parallel, KBCM advised on a new senior credit facility to refinance the Company’s debt facility and provide capital to support continued expansion. The new financing is comprised of a $165 million Term Loan, a $20 million Revolving Credit Facility and a $60 million Delayed Draw Term Loan.

Allied OMS is a doctor-owned, -led and -governed MSO that partners with oral and maxillofacial surgery practices across the U.S. Combining the autonomy of private practice with the scale and sophistication of institutional support, Allied OMS empowers surgeons to lead the future of their specialty. The Company currently supports surgeons in 50+ locations and maintains doctor leadership across all major committees and its Board of Directors.

65 Equity Partners is a global investment firm that supports founders in their growth journey. With $3.3 billion in funds under management and a mandate to invest in entrepreneur-led businesses, 65EP backs companies across healthcare, technology, consumer, industrials, and business services. The firm is backed by Temasek and has offices in Singapore, London, Paris, San Francisco, and New York.

On June 30, 2025, KeyBanc Capital Markets Inc. (KBCM) successfully closed $73 million of Senior Secured Credit Facilities in support of Cenergy Power and its Grounded ESP II LLC portfolio. The facilities comprise a $31 million construction-to-term loan, $41 million in aggregate bridge loans, and $1 million in letters of credit, which will be used to fund construction costs at the Portfolio. KBCM acted as Coordinating Lead Arranger, Depository Agent, Collateral Agent, and Administrative Agent.

The Grounded ESP II LLC portfolio consists of four Illinois community solar assets totaling 24 MW across the Ameren and ComEd utility zones. All projects received the IL Shines REC awards. The projects are expected to reach commercial operations by the end of the 2025.

This represents the first financing transaction between KBCM and Cenergy.

About Cenergy Power
Cenergy Power, formed in 2006 by a group of seasoned power system professionals and financial experts, is a leading distributed generation and small utility-scale solar developer, owner and operator with more than 450 MWs of experience working with local communities and businesses on value-added solar projects. For more information, please visit: www.cenergypower.com

Cain Brothers, a division of KeyBanc Capital Markets, served as exclusive financial advisor to Western Washington Medical Group in the formation and capitalization of a management services organization with IKS Health.

Cain Brothers was engaged based on its expertise and experience in advising multi-specialty physician groups and its success in structuring innovative, value-aligned partnerships. The joint venture supports WWMG’s long-term goals of clinical independence, operational efficiency and sustainable growth.

WWMG represents over 100 providers in 20+ specialty areas serving patients and their families in the north Puget Sound region of Washington. The providers are owners of WWMG, and live and work in the communities they serve. For over 30 years, WWMG’s mission provides clinicians the freedom to practice medicine with compassion and in the best interest of patients and their communities.

IKS Health takes on the chores of healthcare — spanning administrative, clinical, and operational burdens — so that clinicians can focus on their core purpose: delivering great care. Combining technology and dedicated experts, IKS enables stronger, financially sustainable enterprises. IKS’s Care Enablement Platform delivers data-driven value and expertise across the care journey, and IKS is a partner for clinician enterprises looking to effectively scale, improve quality, and achieve cost savings through forward-thinking solutions. Founded in 2006, IKS’s global workforce supports large health systems across the United States. 

KeyBank Community Development Lending and Investment (CDLI) provided a $32 million tax-exempt construction loan and a $15 million taxable construction loan to finance the new construction of El Camino Commons, an affordable multifamily housing property in Oceanside, California. The $27.8 million permanent loan will be privately placed with one of KeyBank Commercial Mortgage Group’s (CMG) institutional investors. 

El Camino Real Apartments will be a four-story residential building with 111 units consisting of two and three-bedroom apartments for families earning between 30% and 80% of area median income (AMI). The property will include a leasing office and a community area within a 6,500 square foot common space, including outdoor recreational space and central laundry rooms on each floor. Supportive Services will be provided by Mission Neighborhood Centers (MNC), which offers educational programs, workforce development, homelessness prevention, and social services.

The sponsor, Mirka Investment, is a real estate development firm known for its high-quality affordable multifamily rental communities as well as their assistance of underserved and diverse portions of the population, including financially struggling families, veterans, seniors, formerly homeless, and developmentally disabled individuals.

The project secured an additional $32 million construction loan from the California Municipal Finance Authority through a Multifamily Housing Private Activity Bond issuance, $12.9 million in certificated credits from the City of Oceanside State Housing Tax Credit program via Monarch Private Capital, and $16 million in Federal Low-Income Housing Tax Credit (LIHTC) equity from WNC.

El Camino Real Apartments will be located in Oceanside, California, just north of Carlsbad. The development benefits from excellent transportation access and proximity to essential community amenities, including quality schools and supportive services.

Matthew Haas of KeyBank CDLI’s Western Regional team structured the financing. Hector Zuniga of KeyBank CMG arranged the permanent financing.  

On June 27, 2025, KeyBanc Capital Markets Inc. (KBCM) successfully closed the syndication of $350 million Senior Secured Credit Facilities for Tule River Tribe Gaming Authority, an instrumentality of the Tule River Indian Tribe. The Credit Facilities include a $100 million Revolver, $100 million Term Loan and $150 million Delayed Draw Term Loan, which will refinance existing indebtedness and fund construction of the Tribe’s Eagle Mountain Casino ~$280 million expansion project. KBCM acted as Left Lead Arranger, Joint Bookrunner, and Administrative Agent.

This transaction represents KBCM’s second left lead syndicated transaction with Tule River Tribe Gaming Authority. They selected KBCM due to our longstanding relationship with the Tribe and management team, our extensive knowledge and experience within the Native American Financial Services industry, and successful track record of syndicating transactions in the gaming space.

About Tule River Indian Tribe
The Tule River Indian Tribe is a federally recognized Indian tribe comprised of over 1,900 members. The Tribe’s reservation covers almost 85 square miles in the foothills of the Sierra Nevada mountains.

About Eagle Mountain Casino
Eagle Mountain Casino reopened to the public in May 2023 after relocating to Porterville, California, and currently features 1,750 slot machines, 20 table games, multiple restaurants and a 2,000-seat event center. The project will transform the Casino into a destination-style resort featuring a 193-room hotel, conference and meeting space, pool, spa, lazy river and other premium amenities. Construction will be completed in two overlapping phases, with final completion expected in May 2027.

In June 2025, KeyBanc Capital Markets Inc. (KBCM) successfully closed $280 million of Senior Secured Credit Facilities (the Facilities) for Scout Clean Energy’s Gonzaga Ridge Wind Project in Merced County, California. The Facilities include a Construction Loan, a Transfer Bridge Loan, and Letter of Credit Facility. Proceeds will be used to fund construction of the 147.5 MW wind repowering project, which revitalizes the original 18 MW Gonzaga Ridge wind farm built in the 1980s. KBCM acted as Coordinating Lead Arranger and Administrative Agent.

About Scout Clean Energy
Scout Clean Energy is a renewable energy developer and owner-operator based in Boulder, Colorado with a nationwide portfolio of wind, solar, and storage projects totaling 1.6 GW of operating and construction capacity, 2.1 GW of late-stage development assets, and a 19+ GW development pipeline. Scout has expertise in all aspects of renewables project development, permitting, power marketing, finance, construction, 24/7 operations, and asset management. Scout is a portfolio company managed by Brookfield Asset Management, which acquired Scout in 2022.

KBCM Relationship
Scout Clean Energy is a longstanding client of Key across multiple financing and M&A transactions. In 2022, KBCM advised Quinbrook on their $1 billion sale of Scout to Brookfield Renewable. This financing represents the ninth transaction between Scout and KBCM and the 11th transaction between Brookfield Renewable and KBCM.