SOURCE: Ziegler


October 04, 2010 14:24 ET

Ziegler Announces Transaction Closing for Bronson Methodist Hospital

CHICAGO, IL--(Marketwire - October 4, 2010) -  Ziegler (PINKSHEETS: ZGCO), a specialty investment banking firm serving hospital and healthcare systems clients since 1928, announced the successful transaction closing for Bronson Methodist Hospital (Bronson). Bronson is a 405-licensed bed general acute care hospital located in Kalamazoo, Michigan; Bronson is a part of the Bronson Healthcare Group, Inc.

Ziegler has served as Bronson's investment banker for over seven years. During the financial crisis of 2008, Ziegler worked diligently with Bronson to reduce the risk profile of its capital structure by removing counterparty risk to financial institutions and by reducing the risks associated with variable rate indebtedness. In early 2010, Ziegler presented the opportunity for Bronson to further reduce its balance sheet risk. The Series 2010 transaction included the conversion of the outstanding insured variable rate demand obligations to fixed-rate bonds totaling $75 million that carried Assured Guaranty insurance. By converting this series to fixed- rate bonds, Bronson was able to preserve the value of its bond insurance policy and minimize its capital costs. The second series, which totaled $114.26 million, was structured as unenhanced securities and carried an "A2" rating from Moody's. In conjunction with the fixed-rate conversion, which reduced counterparty, basis, remarketing, and acceleration risks, Bronson terminated corresponding fixed-payer swaps to further reduce its balance sheet risk profile.

John Hanley, Ziegler's newly promoted head of its healthcare practice, commented, "Bronson offers an excellent example of how Ziegler works with its clients to identify creative financing solutions that best meet their organization's short- and long-term financial goals."

For more information about Ziegler and this transaction, please visit us at

About Ziegler:
The Ziegler Companies, Inc. (PINKSHEETS: ZGCO) together with its affiliates (Ziegler) is a specialty investment bank with unique expertise in complex credit structures and advisory services. Nationally, Ziegler is ranked as one of the leading investment banking firms in its specialty sectors of healthcare, senior living, religion and education finance, as well as corporate finance and FHA/HUD. Headquartered in Chicago, IL with regional and branch offices throughout the U.S., Ziegler creates tailored financial solutions including bond financing, advisory, private placement, seed capital, M&A, risk and asset management. Ziegler serves institutional and individual investors through its wealth management and capital markets distribution channels.

Certain comments in this news release represent forward-looking statements made pursuant to the provisions of the Private Securities Litigation Reform Act of 1995. The forward-looking statements are subject to a number of risks and uncertainties, in particular, the overall financial health of the securities industry, the strength of the healthcare sector of the U.S. economy and the municipal securities marketplace, the ability of the Company to underwrite and distribute securities, the market value of mutual fund portfolios and separate account portfolios advised by the Company, the volume of sales by its retail brokers, the outcome of pending litigation, and the ability to attract and retain qualified employees.

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