CarolinaEast Health System Healthcare System Revenue Refunding Bond Series 2022

Cain Brothers served as Structuring Agent & Advisor for CarolinaEast Health System’s Healthcare System Revenue Refunding Bond, Series 2022.

The Series 2022 Bond refinanced CarolinaEast’s Healthcare System Revenue Bond, Series 2016. Cain Brothers negotiated a 10-year hold period with the existing bondholder ahead of the October 2023 Mandatory Put Date on the Series 2016 Bond related to the purchase of the variable rate Series 2022 Bond. In addition, Cain Brothers worked with the swap counterparty to execute a partial termination of the CarolinaEast termination option on the fixed pay interest rate swap associated with the Series 2016 Bond through an adjustment to the fixed pay interest rate and set the Optional Termination Date on the swap to match the Mandatory Put Date on the Series 2022 Bond. The Series 2022 Bond utilized Daily Simple SOFR (Secured Overnight Financing Rate) as the index to replace 1-Month LIBOR (being discontinued in June 2023). As a result of the transactions, CarolinaEast will benefit from an attractive low cost of capital for at least the next 10 years.

CarolinaEast Health System is a premier multi-facility health care provider located in the heart of eastern North Carolina that provides comprehensive health care services to the people of Craven, Jones, Pamlico, and surrounding counties. CarolinaEast is comprised of two organizations, CarolinaEast Medical Center, a 350-bed medical center offering a complete suite of inpatient and outpatient services, and CarolinaEast Physicians. CarolinaEast is a sole community provider.