Greystone provides $215.5 million in HUD financing for Care New England Health System in R.I.

Warwick, RI Greystone has provided a $215.5 million FHA 242 GNMA financing for Care New England Health System (CNE). CNE was advised by Cornerstone Health Advisors LLC and the transaction was originated by Greystone managing director Brett Southworth.

CNE operates a three-hospital system totaling 749 beds across the state. Loan proceeds will be used to refinance CNE’s existing Series 2016B & C bonds and fund renovations and new construction projects — including ambulatory facilities at Kent Hospital and renovations at Women & Infants Hospital.

The transaction is one of the largest FHA 242 loans in the program and features a first-of-its-kind co-borrower structure designed to preserve CNE’s existing obligated group, similar to structures commonly used in traditional markets. 

“We are thrilled that we were able to execute a financing that will help further the growth of Care New England,” said Southworth. “This transaction underscores Greystone’s leadership in healthcare finance and our ability to deliver innovative capital solutions in complex market environments.”

“The HUD structure was perfect for our needs. In traditional markets, CNE was a sub-investment grade credit. HUD insurance allowed CNE to refinance its outstanding debt and access substantial new money that would be expensive in traditional markets, but affordable with HUD insurance. This loan will expand care in Rhode Island and improve our capital structure. We are grateful for the support of our dedicated board, and the teams at HUD, Cornerstone, and Greystone,” said Todd Conklin, executive vice president & CEO of Care New England Health System.