The project achieved LEED Silver certification in February 2022.

EllisDon Capital Inc. (“ED Capital”) was the Developer and Financial Advisor on the Groves Memorial Community Hospital project. ED Capital was involved in all aspects of the project financing process, which included evaluating various debt structures and structuring the security package. ED Capital also managed all negotiations with the lenders, managed the funding competition to ensure that CIBC Asset Management and its funds provided pricing that created the lowest effective cost of financing to the project. Lastly, EllisDon developed a robust financial model in-house, that was used to evaluate and optimize the financial proposal.

Summary of Financing
The project was debt financed with a direct private placement with CIBC Asset Management. The debt raised in the issuance was $115 million.
No equity injections were required on the project. To date, there have been no incidents of default.

EllisDon Energy & Digital Services provided a variety of services for the facility, including:

• Communications: Audio-Video System-Infrastructure Only;
• Communication: Complete Voice & Data System Including Cabling & Equipment;
• Communications: Special Communication Systems;
• Electronic Safety & Security: Complete Security Systems including cabling & equipment; and
• Electronic Safety & Security: Fire Alarm System.

EllisDon Facilities Services Inc. will ensure that maintenance tasks are scheduled using a computerized maintenance management system. The programming of this CMMS will be determined by the following criteria:
• Asset criticality;
• Use in service;
• Predicted lifecycle performance;
• Functional area risk category;
• Manufacturing servicing information;
• Compliance requirements; and
• Redundancy status

Required Information in the CMMS:
• Asset information;
• Work instructions; and
• Associated instructions.

Challenge: Achieving the lowest cost of financing through an innovative financing structure
Solution: ED Capital compared the value of a term loan against a short-term bullet bond throughout the Request for Proposals process. Due to competitive spreads from CIBC, ED Capital ultimately selected a short-term bond as the most cost-effective solution. This was the first short-term privately placed financing for a Design-Build-Finance transaction.

Challenge: Reducing the negative carry associated with an upfront draw
Solution: Bank facilities have an inherent advantage of interest payable only on amounts drawn, benefitting from a delayed draw structure. The upfront nature of a bond requires a reinvestment product to offset interest payable with interest earned, to simulate a delayed draw structure. EllisDon received very attractive pricing, which greatly reduced the interest expense for the product.

Challenge: No precedent transaction documentation
Solution: The Groves Memorial Hospital represented the first transaction EllisDon has done with CIBC Asset Management and thus there was no template financing documentation between institutions. Both lenders and equity counsel had quoted fees higher than what is customary for a DBF transaction. EllisDon invested time to negotiate a lower fee, which saved a considerable amount of money, savings which were ultimately passed on to the project.