HSF Kramer acts as purchasers’ counsel for $100 million capital raise to finance two hospital acquisitions in connection with the Prospect Medical Holdings bankruptcy

HSF Kramer successfully represented several institutions that recently provided nearly all of the approximately $100 million of new capital to finance the acquisition of two hospitals in Providence, Rhode Island in connection with the Prospect Medical Holdings bankruptcy.

After previous failed attempts to find financing for the acquisition, HSF Kramer was retained as purchasers counsel by several institutions that were interested in particularly robust representation, given the background of the situation.  

HSF Kramer and its clients worked closely together with the acquiror – The Centurion Foundation – and its advisors to negotiate the terms of the financing as well as to obtain and maintain significant support, throughout the process, from the Rhode Island legislature and other government entities, including a substantial debt reserve fund of $18 million provided by the state. 

The investors received a mix of tax-exempt and taxable bonds that are indirect obligations of the new nonprofit holding company – CharterCARE Health of Rhode Island, Inc.

 The HSF Kramer team advising the investors was led by our Municipal and Infrastructure Special Situations Group, including Amy Caton (Managing Partner, Finance and Restructuring, US), Bodie Stewart (Partner, Special Situations, Finance/Capital Markets), and Doug Buckley (Counsel, Bankruptcy and Restructuring), supported by Bankruptcy and Restructuring associate Emily Mandell; Finance associate Nicole Chong, Finance associate Marie Soga, and Finance special counsel Chris Henry; Real Estate counsel Mendel Trapedo; and Tax partner Avi Reshtick.