Debt Financings

Brightwood Capital Advisors led.

The loan comes from USDA Rural Development's Community Facilities Program, which provides affordable funding to develop community facilities in rural areas.

The loan, which matures November 2027, initially bears 14 percent interest for the first two years and then will bear 13 percent, Cano said.

"Butler financial results through December 31 suggest that its operating challenges persist, exacerbated by inflationary pressures on labor and supplies, but also patient volumes, which have yet to rebound to pre-pandemic levels," Fitch said.

Underwriters of the bond offering are BofA, Barclays, J.P. Morgan, Citigroup, and Wells Fargo.

The loan will be used for construction of an 82,000-square-foot, four-story tower, which will house a new patient nursing unit, a surgery unit with a central sterile services department, an ICU waiting room, and administrative and general support space.

The approved ballot measure allows the hospital district to restructure its bond debt to finance $23 million in hospital improvements. However, to move forward with the refinancing and construction projects, interest rates must be 5% or lower.

This loan will give the hospital more time to find a strategic partner, as it was estimated the hospital would have run out of money by Feb. 18.

The new facility will have 30 skilled nursing beds, five basic care beds and eight inpatient rooms.