Our variable rate debt needed to be refinanced at the same time we were pursuing funding for our hospital expansion. With our BBB rating, we anticipated borrowing through the issuance of tax-exempt hospital revenue bonds. InnoVative Capital presented our board with a creative and attractive alternative… Two individual FHA 242 mortgage insured taxable loans, collateralized with Ginnie Mae securities. Taking advantage of record-low long-term interest rates for AAA government securities, InnoVative Capital was also able to eliminate our negative arbitrage through the use of FHA construction loan certificates. I am pleased to report that acting as our FHA mortgage banker, InnoVative Capital delivered an extremely low blended interest rate and reduced our transaction expenses.
