McLeansboro Times-Leader


August 7, 2013

Refinancing of hospital district loan moves forward

McLEANSBORO — Hamilton Memorial Hospital District's board of directors moved forward last week on a proposal to refinance its 2007 financing agreement for the hospital expansion and renovation.

First Midwest Bank, a Chicago-area financial institution, has made a proposal to refinance the hospital district's original loan.

Hamilton Memorial financed about $18.5 million in 2007 to renovate and expand its hospital and nursing home; the latter has since been sold.

The hospital district currently needs to refinance about $20 million, which would include an estimated $3 million on the original loan's interest-rate “swap,” Randy Dauby, Hamilton Memorial's chief executive officer, told the hospital board at its meeting July 30.

Hamilton Memorial's board voted 7-0 to approve a motion at that meeting to make application for the new loan — which calls for a $10,000 deposit from the hospital district — after accepting a term sheet from First Midwest.

A representative of First Midwest has already met with hospital officials and toured the facility, and the meeting went well, Dauby said.

Sovereign Bank, the principle lender on Hamilton Memorial's original loan, notified the hospital district in 2011 that it would not extend its letter of credit beyond the original five-year agreement, though it did grant a one-year extension last fall. That extension expires Nov. 1.

Since receiving Sovereign's notice, Hamilton Memorial has been looking at its options, which to this point are “not working out,” Steve Kennedy of Lancaster Pollard told the hospital board in a conference call at its recent meeting. Lancaster Pollard is the investment banking firm used by Hamilton Memorial in 2007 for the original loan.

But First Midwest is looking to move into the health-care market and work with critical access hospitals such as Hamilton Memorial, Kennedy said.

And First Midwest is “willing to work collaboratively” with Peoples National Bank, the local bank which currently holds about $3 million of the loan, he said.

Text Only
  • City to provide electric service at high school McLEANSBORO — In a settlement agreement, the city will be providing electric service to the Hamilton County Unit 10 Junior/Senior High School. The settlement is contingent upon agreement by the Illinois Commerce Commission. "Hopefully, it will go thr

    April 23, 2014

  • ISP conducts patrols in county McLEANSBORO Illinois State Police conducted an occupant enforcement patrol in Hamilton County on March 28, resulting in 20 total citations. According to the ISP, 16 safety belt citations were given during the enforcement, and six warnings. The progr

    April 23, 2014

  • Push on for school sales tax By PAUL LORENZ Push on for school sales tax

    January 22, 2014

  • RLC Softball on 6-game winning streak RLC Softball on 6-game winning streak

    April 23, 2014

  • Residents make themselves heard McLEANSBORO Residents spoke out against the proposed zoning ordinance during a public hearing on Monday. "We've been able to take care of our property without this zoning commission or the city council coming out and telling us what to do," said Gle

    April 23, 2014

  • Bulletin Board Post-Prom Purse Auction reset McLEANSBORO — A Post-Prom Purse Auction fundraiser has been rescheduled for Sunday, Jan. 26, at Hamilton County High School. Proceeds from the auction will go toward this year's post-prom activity and the senior class tr

    January 22, 2014

  • City zoning law debated at County Board meeting McLEANSBORO — A group of Hamilton County citizens protesting the new city zoning ordinance voiced their concerns at the April 15 Hamilton County Board meeting. In November, the McLeansboro City Council adopted a new zoning ordinance that includes a m

    April 23, 2014

  • Bulletin Board Prenatal class scheduled McLEANSBORO -- A two day prenatal class will be offered at the Family Resource Center in conjunction with the Illinois Department of Transportation from 6 to 9 p.m. on Monday, May 5 and Monday, May 12. Anita Nenonen, birth do

    April 23, 2014

  • Courthouse Reports Hamilton County Circuit Clerk Dispositions Kayla J. Hanson, 22, of the 700 block of South Hancock Street, pleaded guilty to aggravated battery pregnant/handicapped person and was fined $600, and sentenced to 18 months probation. Four counts of forger

    April 23, 2014

  • 4-17 teffertiller dies Bert Teffertiller, 92, dies McLEANSBORO -- Long-time businessman and community activist Bert Teffertiller passed away on April 10. "Words can't express what he meant to this community," said McLeansboro Mayor Dick Deitz. "His church and his family came first with him, and his c

    April 16, 2014 1 Photo

AP Video