Capital One Provides $73.4 Million Credit Facility to Maryland Area Not-for-Profit Doctors Community Hospital

Tuesday, September 20, 2016

BETHESDA, MD – Capital One announced that it has provided a $73.4 million credit facility to Doctors Community Hospital, an independent, not-for-profit hospital serving Maryland’s Prince George’s Country and the greater Washington, DC, metropolitan area. The debt was structured as a $31.9 million tax-exempt bond issued by the Maryland Health and Higher Educational Facilities Authority and a $41.5 million taxable loan, which is expected to convert to a tax-exempt bond in 2017. Proceeds were used to repay existing tax-exempt financing, reducing the hospital’s debt service significantly. The new bonds have similar maturity dates as the ones they replaced. 

The financing was arranged through Capital One Municipal Funding (COMF). COMF provides tax-exempt financing primarily for not-for-profit organizations such as schools, foundations, trade associations, and cultural or community institutions seeking funds for capital improvement projects. 

“This was a complicated transaction requiring a number of adjustments before closing, but throughout it all, our overriding priority was finding terms that served the hospital’s goals,” said Kathleen Malloy, Senior Vice President and Washington-area Manager of Capital One’s Not-For-Profit Banking Group. “Our team is committed to working with strong community-based organizations whose mission is to serve the residents of our region.” 

Doctors Community Hospital was advised by Chuck Stafford and Todd Smart of Ziegler and John Cheney of Ponder & Co., who worked closely with Capital One to structure a creative solution to support the hospital’s goal to create meaningful debt service savings over the life of the bond and loan. 

Founded in 1975, Doctors Community Hospital is a 212 available bed facility that provides medical and surgical services in Lanham, MD. In support of its population health focus, it has several clinics throughout Prince George’s County, MD, providing medical homes, preventative care and specialty services to area residents. The hospital was recently recognized by U.S. News & World Report as a high performing hospital in the areas of chronic obstructive pulmonary disease and heart failure. 

“We were very pleased with our new credit facility and the service we received from Capital One,” said Camille Bash, Doctors Community Hospital’s Chief Financial Officer and Treasurer. “In addition to delivering competitive and creative financial solutions, it was instrumental in making this transaction a reality and helping us achieve substantial cost savings.” 

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About Capital One 

Capital One Financial Corporation (www.capitalone.com) is a financial holding company whose subsidiaries, which include Capital One, N.A., and Capital One Bank (USA), N.A., had $221.1 billion in deposits and $339.1 billion in total assets as of June 30, 2016. Headquartered in McLean, Virginia, Capital One offers a broad spectrum of financial products and services to consumers, small businesses and commercial clients through a variety of channels. Capital One, N.A. has branches located primarily in New York, Louisiana, Texas, Maryland, Virginia, New Jersey and the District of Columbia. A Fortune 500 company, Capital One trades on the New York Stock Exchange under the symbol "COF" and is included in the S&P 100 index. 

About Doctors Community Hospital 

Doctors Community Hospital is a premier medical and surgical hospital located in Lanham, Maryland. A 212 available bed facility that has earned numerous quality awards, Doctors Community Hospital provides a wide range of programs and services: Bariatric and Weight Loss Center, Center for 

Comprehensive Breast Care, Center for Wound Healing and Hyperbaric Medicine, Comprehensive Orthopedic Services, Comprehensive Rehabilitation Services, Doctors Community Surgical Associates, Doctors Regional Cancer Center, Emergency Department, Imaging Services, Infusion Center, Joslin Diabetes Center, Doctors Community Rehabilitation and Patient Care Center (transitional care), Primary Care Services, Sleep Center and Vascular Health Program. To learn more, visit www.DCHweb.org or call 301-DCH-4YOU (301-710-9806). 

About Ziegler 

Ziegler is a premier investment bank to community and regional healthcare providers. For over 80 years, we have been assisting these organizations with creative, tailored financial solutions for their capital needs. Specializing in healthcare, Ziegler offers an array of services including investment banking, financial risk management, merger and acquisition services, as well as capital and strategic planning.