Deal of the Year 2017 - Healthcare: Kaiser Permanente (California HFFA)

Oakland, Calif.-based Kaiser Permanente is the nation's largest not-for- profit healthcare system. It provides healthcare services across the nation through an integrated system of health plans, hospitals and physician groups that serve 11.7 members across eight states and Washington, D.C.

During April, in its first public transaction since May 2012, Kaiser priced $4.2 billion of bonds, half taxable and half tax-exempt -- the largest total bond financing and largest taxable bond financing ever issued by a 501(c)(3) healthcare institution.

Proceeds of the bonds were to be used to finance the San Diego Medical Center and other health care facilities, fund general corporate purposes, and refinance commercial paper. The conduit issuer on the tax-exempt portion was the California Health Facilities Financing Authority.

As part of Kaiser’s long-term, environmental stewardship goals and its commitment to sustainability, the offering also included $1 billion of green bonds – the most ever by any healthcare organization -- to finance costs associated with medical facilities that had either received, or were expected to receive, gold or platinum status form the U.S Green Building Council’s Leadership in Energy and Environmental Design.

Following a week-long marketing process, the transaction was significantly oversubscribed and garnered investor interest both domestically and internationally.