HJ Sims Arranges $132.4M Financing for Benedictine Health System

by Jeff Shaw

MINNEAPOLIS — HJ Sims has arranged $132.4 million in financing for Benedictine Health System, a Minneapolis-based nonprofit healthcare system providing long-term care services, congregate housing, assisted living, rehabilitation, healthcare and social services.

Historically, most of Benedictine’s affiliates were financed on a standalone basis, resulting in 36 separate loans for 19 different borrowers. The various series of debt were held by eight different banks or servicers with inconsistent terms, covenants and reporting requirements. Benedictine’s board and executive leadership team sought to actualize a capital framework to ensure growth, transformation of service mix and reinvestment in existing campuses.

The financing brings 21 communities — 14 in Minnesota and seven in North Dakota — under a single loan structure. Sims and Benedictine ultimately chose to work with two bank lenders with whom Benedictine had longstanding relationships.

The financing enabled Benedictine to borrow an additional $10 million for routine capital expenditures across its campuses, even with debt increase annual debt service decreased by over $2 million.

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