| How does First River Advisory present clients' credit characteristics effectively? |
 |
 |
Once the Presentation of Credit Information has been submitted, First River Advisory organizes site visit agendas and drafts outlines for the use of client representatives. These outlines cover, for each presenter, the following items:
- Topic
- Central Theme
- Points to Address / Reinforce
- Be Prepared For
Once the outlines have been distributed to all presenters, First River Advisory then conducts a comprehensive rehearsal to prepare for the site visit.
First River Advisory does not consider this task to be complete once a rating has been released. To fulfill their fiduciary responsibility to their shareholders, analysts representing mutual funds, major investors in heath care organizations' bonds, must conduct their own independent research to supplement rating agencies' reports. To accommodate their needs, First River Advisory routinely takes the following steps:
- First River Advisory organizes a dial-in conference call during which client representatives can elaborate on particular issues and respond to questions from analysts in a public forum;
- for those analysts who cannot or decline to participate in the conference call, First River Advisory arranges and monitors telephone calls between analysts and client representatives; and
- First River Advisory actively channels analysts' information requests and clients' responses.
Financings Involving Bank Products
First River Advisory has extensive experience in obtaining commercial bank financing in the form of letters of credit (LOC) and direct loans. Among those engagements that featured the involvement of banks were:
- Silver Maples of Chelsea (new LOC)
- Garden City Hospital (1996) (construction loan, with conversion to LOC)
- Lock Haven Hospital (replacement LOC)
- Allegan General Hospital (direct purchase of bonds)
- Chelsea Community Hospital (2000) (new LOC)
- Detroit Symphony Orchestra and Orchestra Place Renewal Partnership (new LOCs)
- Clarion Hospital (2001) (direct purchase of bonds and conventional loan)
- Mount Clemens General Hospital (2003) (new LOC coordinated with issuance of fixed-rate bonds)
- Southwestern Michigan Rehabilitation Hospital (2004) (new LOC)
- Chelsea Community Hospital (2004) (replacement LOC)
- Marquette General Hospital (2004) (conventional loan and LOC)
- Otsego Memorial Hospital (2004/2005) (direct purchase of bonds)
Even if a health care organization believes that its best (or only) source of credit is its local bank(s), First River Advisory's experience and contacts can be valuable in negotiating favorable terms, conditions and covenants.
Many of the transactions that Shelley Aronson completed prior to the formation of First River Advisory also involved bank credit facilities, including letters of credit, direct loans and interest rate management products.
High-Yield Market
First River Advisory has been in the forefront of arranging financing for health care organizations in the high-yield bond market. The 1997 Arbor Hospice financing represented one of the first unenhanced bond issues to fund a hospice facility. Shelley Aronson has been involved with this segment of the market since 1990.
| < Prev | Next > |
|---|
