MEMPHIS, Tenn. (Aug.28, 2007) — Morgan Keegan & Company, Inc., chosen to spearhead financing efforts for a new hospital in Booneville, Arkansas, obtained a $16.65 million Community Facilities Guarantee through the United States Department of Agriculture (USDA) to help fund the project.
"The $16.65 million award is the largest granted in the nation by USDA for a rural hospital in more than a year and the first of its type in the state of Arkansas,” said Jason Thomas, first vice president in Morgan Keegan’s Little Rock office. “With a more traditional type financing, the city faced less desirable options such as using an existing sales tax for the construction debt or going to the voters to request a new tax. The USDA award allowed the City to preserve the existing sales tax for the operations and maintenance of the hospital.”
Booneville Mayor Jerry Wilkins called the USDA award to Booneville Community Hospital (BCH) a joint effort of the City of Booneville, the hospital and its advisors, Morgan Keegan and the USDA.
"The USDA guarantee allowed us to finance the new facility through Morgan Keegan, while not burdening the city with significant debt or altering the current operations of the hospital,” said Mayor Wilkins.
Dzaidi Daud, BCH chief executive officer, said Morgan Keegan’s thorough and innovative approach to the hospital’s financing made the difference.
“They understand how vital this project is to the community and the challenges we face as a rural hospital” said Daud. “A new state-of-the-art facility will allow us to attract new, talented physicians and provide specialty-care services equivalent to centers of excellence in many cities. A new hospital also gives us the opportunity to develop mutual agreements with larger facilities in which we can, for example, send our heart patient to a large hospital for surgery and have him return home to us for post-surgery care.”
Construction of the 25-bed, acute care critical access hospital began earlier this year, with plans to open in early 2008, Daud said.
About Morgan Keegan & Company, Inc.
Morgan Keegan & Company Inc., one of the nation’s largest regional full-service brokerage and investment banking firms, is the securities brokerage subsidiary of Regions Financial Corporation (NYSE: RF). Headquartered in Memphis, Tenn., Morgan Keegan has over 400 offices. The firm’s staff of more than 130 public finance professionals provides underwriting services through 24 banking offices in 13 states. Additional information about Morgan Keegan can be found at www.morgankeegan.com.
About Regions
Regions Financial Corporation is a member of the S&P 100 Index and Forbes Magazine's "Platinum 400" list of America's best big companies. With nearly $140 billion in assets, Regions is one of the nation's largest full-service providers of consumer and commercial banking, trust, securities brokerage, mortgage and insurance products and services. Regions serves customers in 16 states across the South, Midwest and Texas, and through its subsidiary, Regions Bank, operates some 1,900 AmSouth and Regions banking offices and more than 2,400 ATMs. Additional information about Regions and its full line of products and services can be found at www.regions.com.
Contact:
Melinda Rutland
901/531-3259
melinda.rutland@morgankeegan.com
