Chicago-based CommonSpirit Health won The Bond Buyer's 18th Annual "Deal of the Year" award for its $6.5 billion debt restructuring, which drew demand from investors and support from financial analysts.
CommonSpirit, which was formed through the Feb. 1 merger of San Francisco-based Dignity Health and Englewood, Colo.-based Catholic Health Initiatives, executed the debt restructuring in August. The Bond Buyer's editorial board said the complex $6.5 billion financing checked all the boxes they consider when evaluating transactions for the annual award.
"It's a monstrous, complex deal that required a large deal team to come to fruition, leveraging expertise across a multitude of disciplines," Mike Scarchilli, editor in chief of The Bond Buyer, said during a Dec. 4 gala in New York City. "And just as importantly, it served to advance the public good in a meaningful way."
Daniel Morissette, senior executive vice president and CFO of CommonSpirit, said the deal, which consisted of a restructuring of debt and new money reimbursement, will yield significant savings.
"We're pleased to be recognized for an important transaction that represents a key milestone for CommonSpirit Health," Mr. Morissette said in a statement to Becker's Hospital Review. "Our debt restructuring created a single credit group for our new organization, providing a stable capital structure for the future that will yield long-term savings of hundreds of millions of dollars and help us sustain the health care services our communities depend on. The strong demand for our bonds also reflected the confidence that investors have in our management team, vision and strategy."
CommonSpirit is one of the largest health systems in the U.S. It operates 142 hospitals in 21 states and has annual revenues of nearly $30 billion.
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