$12,175,000
City of Hillsdale (MI) Hospital Finance Authority
Hospital Revenue Bonds
June 1998

First River Advisory was appointed Financial Advisor by this rural hospital to spearhead the issuance of $12 million of long-term, fixed-rate bonds.  This bond issue enabled Hillsdale to refinance variable-rate loans, finance the completion of its capital improvement program, and fund most of its capital budget for the next three years.  The outcome was a bond issue having a final maturity in 2026 sold at an all-in true interest cost of less than 5.62 percent.  As a result of First River Advisory's tight control on costs of issuance, Hillsdale was able to finance all transaction fees well within the two percent limit allowed by the Internal Revenue Code.

Hillsdale, licensed for 65 acute care and 21 long-term care beds, is among the smallest hospitals to have received an investment-grade rating.  First River Advisory's skill at crafting the written and oral presentations was a key ingredient to this accomplishment.

Once again, this organization and its chief financial officer were first-time borrowers.  First River Advisory provided the extra level of attention that is essential to ensure a smooth process.  The week during which the closing and delivery of the bonds actually occurred was the same that was set forth on the very first financing timetable that First River Advisory assembled.