Preston Hollow Capital (PHC), an independent specialty municipal finance company based in Dallas, announces the December 2018 completion of a $132 million bond financing transaction for Richmond University Medical Center (RUMC) in Staten Island, New York. Proceeds of the tax-exempt bonds, issued through the Build NYC Resource Corporation, will provide funding for major strategic improvements designed to position the medical center to meet the growing health care needs of Staten Island residents.
The improvements include construction of a new 35,000 square-foot emergency department, set to begin in spring of this year. The new department will include increased private treatment rooms, state-of-the-art trauma bays and specialty areas for urgent and pediatric care. Also this year, RUMC will begin construction of a new co-generation power plant, providing the medical center with cleaner, more cost-efficient energy. Upon completion, the power plant is expected to save Richmond University Medical Center approximately $1 million in annual energy costs.
RUMC’s history in Staten Island dates back to 1903, when it was established as a 74-bed facility by the Sisters of Charity. The medical center is now licensed to operate 448 beds and is a leader in the areas of acute, medical, and surgical care. As a Level 1 Adult Trauma Center and designated Stroke Center, Richmond University Medical Center has received national recognition from the American Heart Association and American Stroke Association.
'Prior to our discussions with RUMC, the hospital was planning to utilize HUD’s Section 242 FHA financing program,' said Charlie Visconsi, Managing Director at Preston Hollow Capital. 'We were able to provide a superior financing alternative by delivering capital with greater speed and efficiency.'
'Thank you to everyone involved in supporting our new state-of-the-art emergency department,' said medical center President and CEO Dr. Daniel J. Messina. 'We assist over 60,000 people a year in our Level 1 Adult Trauma emergency department. Increasing our capacity is critical to ensuring that residents of Staten Island continue to receive the highest level of emergency care during their moments of greatest need.'
'RUMC delivers critical medical services to Staten Island’s residents,' said Jim Thompson, Chairman and CEO of Preston Hollow Capital. 'RUMC’s modernization and expansion is the type of impactful program that we like to finance because it promotes a better, stronger local community.'
Cain Brothers, a division of KeyBanc Capital Markets, served as underwriter on the financing with Tiber Hudson LLC serving as underwriter’s counsel. Katten Muchin Rosenman LLP served as bond counsel, and Garfunkel Wild, P.C. served as counsel to the medical center.
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