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Mintz Delivers a Record-Size Deal for Partners HealthCare

Key Facts

  • Largest borrowing ever for our client, totaling over $1.3 billion
  • The borrowing involved over a billion dollars in tax-exempt bonds issued simultaneously in MA and NH
  • We achieved present value savings of over $125 million for the client

The Situation

Our long-term client, Partners HealthCare, was involved in one of their largest borrowings ever. Partners needed our team, in collaboration with theirs, to help swiftly close a bond deal ahead of the new tax bill’s effective date. The deal proceeded to market in just seven weeks in order to close in 2017 ahead of the tax law changes. This deal is part of a select group of nationally visible health care deals planned for 2018 that were brought on an accelerated basis during the 2017 year-end rush. Partners’s refunding achieved present value savings of over $125 million.

The Approach

Our multifaceted team creatively handled the tax issues, bond documents, disclosure materials, and multiple drafts in addition to hefty collaboration within our own team and Partners’ internal team. Greg Sandomirsky worked on drafts, the transaction picking, processing challenges, and options with the working group and the client’s internal team. Christie Martin handled everything tax related, working with on all of the unique, separate transactions buried in this “multipurpose issue.” Matt Page took charge of preparing the voluminous bond documents, while the disclosure materials that focused on the client’s credit and significant risks revolving around the current state and federal marketplace were handled by Colleen Murphy.

The Outcome

We ultimately helped close taxable and tax-exempt bond totaling $1,351,314,000. Almost two-thirds of the tax-exempt debt constitutes an “advance refunding,” for which allowability is eliminated under the new tax law, so it was pertinent that this deal was closed before the new tax law became effective. The net present value of the savings from all the refunding components was in excess of $125 million. All in all, this was a record-setting deal, by several measures, for an industry-leading client with a well-deserved international reputation for excellence.