The California Public Finance Authority (“CalPFA”) has provided $21 million of tax-exempt nonprofit revenue notes to Verity Health System of California, Inc. for the purpose of financing working capital. Verity (formerly known as the Daughters of Charity Health System) is a California nonprofit public benefit corporation which is the parent organization of a regional health system providing acute, long-term, community health, psychiatric, rehabilitation and residential care. Verity employs more than 6,000 staff throughout its medical and support facilities in the cities of San Jose, Gilroy, Daly City, Moss Beach, Redwood Shores, Los Altos Hills, Lynwood, and Los Angeles.
Verity has six hospitals that desperately need services added to some of the most at risk populations in their service areas. Verity intends to use the proceeds derived from the sale of the 2017 Notes to provide funds for additional working capital necessary to support the continued operation of its facilities.
CalPFA partnered with Squire Patton Boggs and Nantworks / Blue Mountain Capital Management to provide financing to the Borrower for the additional working capital to the health system.