Public Finance
Minnesota Agricultural and Economic Development Board
01/24
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$500.0 Million
Piper Sandler served as senior manager on HealthPartners’ Series 2024 Bonds.
- The financing will fund construction of a replacement hospital, clinic, specialty care center, and improvements at existing facilities.
- At the start of the financing process, Piper Sandler identified the opportunity to use a statewide conduit issuer which saved HealthPartners significant time and expense.
- Credit ratings were affirmed at “A2” and “A” by Moody’s and S&P respectively, both with “stable” outlooks.
- Given favorable market conditions, the financing timeline was accelerated with a tightly coordinated and strategic pre-marketing process to showcase the strength of the HealthPartners Obligated Group:
- Continuing disclosure notice in December allowed for preliminary investor inquiries and communication.
- Extensive investor marketing campaign once POS was printed.
- Live investor call which reached 56 potential investors (including replay).
- Management 1x1 calls as requested by several large investors.
- The result on pricing day exceeded expectations:
- 75 investors submitted orders totaling more than $2.5 billion.
- Yields were repriced lower across the entire financing structure.
- HealthPartners locked in a 30-year term at an all-in cost below 4.5%.
- No changes to the existing bondholder security and covenant package which provides HealthPartners significant operating flexibility.
