Red Capital Markets, LLC recently served as a financial advisor to Hoopeston Regional Health Center to secure financing to replace its existing skilled nursing facility. Hoopeston RHC, a not-for-profit hospital, skilled nursing, and seniors housing operator, is located in eastern Illinois, about 120 miles south of Chicago.
“As a first time CEO, we turned to RED CAPITAL to assist us with our financing needs due to their extensive experience financing community hospitals through a variety of bond and governmental programs,” said Harry Brockus, CEO of Hoopeston Regional Health Center, in a statement. “Every step of the way, they were there with the right answers and made a daunting task seem simple. It was refreshing to work with a financing partner that was driven to find a solution to our financing needs.”
The facility obtained financing to acquire land and construct a new 75-bed skilled nursing facility, secured and funded through the USDA’s Community Facilities Direct Loan program. The program’s loan has a 40-year amortization period and carries a 3.75% fixed interest rate. Proceeds from the loan will be used for replacing the existing skilled nursing facility with the new one, which will be located just north of Hoopeston, Ill.
“After examining a variety of financing options, the USDA direct loan provided extremely attractive interest rates and financing terms, enabling the hospital to tackle a much needed full nursing facility replacement. This truly is a great outcome for the residents of Hoopeston and the surrounding area,” said Jeffrey C. Fivecoat, Vice President of Red Capital.
Additionally, Hoopeston RHC also operates a 25-bed Critical Access Hospital and a 30-unit senior living community. It recently expanded its affiliation with Carle Foundation Hospital, and its acute care and physician clinic facilities will function as independent operating units in the Carle organization.
Written by Alyssa Gerace