Greystone has closed a $215,500,000 FHA 242 GNMA loan for Care New England Health System, a major healthcare provider based in Providence, RI. Care New England was advised on the transaction by Cornerstone Health Advisors LLC, and the financing was originated by Greystone managing director Brett Southworth.
Care New England operates a three-hospital system with a total of 749 beds across the state of Rhode Island. The new loan will be used to refinance the health system’s outstanding Series 2016B and 2016C bonds and to provide capital for a range of facility upgrades and expansion projects.
According to information from Greystone, a portion of the proceeds will support new ambulatory facilities at Kent Hospital. Additional funds will be directed toward renovation work at Women & Infants Hospital, enabling Care New England to modernize and expand its clinical infrastructure while maintaining access to care within its existing footprint.
Greystone reports that this financing ranks among the largest FHA 242 loans completed under the program. The execution includes a co-borrower structure that Greystone describes as a first-of-its-kind within FHA 242, designed to preserve Care New England’s existing obligated group framework. The structure is characterized as being similar to arrangements more commonly seen in traditional capital markets financings.
Southworth noted that the transaction is intended to support the continued growth of Care New England’s healthcare platform. He also highlighted the deal as an example of Greystone’s focus on healthcare finance and its efforts to structure capital solutions for complex healthcare credit profiles and market environments.
For Care New England, the transaction consolidates prior bond obligations into a single FHA 242 GNMA execution while providing new project capital. For Greystone, the loan underscores ongoing lender appetite for large-scale, system-level healthcare financings backed by federal credit enhancement.
