Blaylock Van, LLC Successfully Closes $80 Million Landmark Financing for Sage Memorial Hospital
On December 18, 2024, Blaylock Van, LLC proudly served as a key partner in closing the $80,000,000 Arizona Industrial Development Authority Hospital Revenue Bonds (Navajo Health Foundation – Sage Memorial Hospital, Inc. Project) Series 2024 transaction. This groundbreaking financing marks a significant milestone for Native American healthcare infrastructure and represents a pioneering approach in utilizing revenue sources granted to Native American entities to secure healthcare municipal bonds backed by a non-profit healthcare provider wholly within a Native American reservation.
“Sage Memorial Hospital is honored to receive the Deal of the Year Award. This achievement is validation of our enduring 95-year legacy of service and our resolute commitment to placing our community at the heart of everything we do.
The successful bond transaction was critical to completing the new hospital and meeting the evolving health care needs of those we serve. Despite a challenging two-year process to complete the bond, the persistence and determination of the finance team: Blaylock Van and Kaufman Hall; SMH legal team HSDW, MWSW team; and many others, ensured the transaction’s success, securing the future of healthcare in our tribal” said Melinda White, Director of Sage Memorial Hospital.
A Vision for Community-Centered Healthcare
Sage Memorial Hospital, operated by the Navajo Health Foundation – Sage Memorial Hospital, Inc., is a community-owned and operated Arizona-based private 501(c)(3) not-for-profit healthcare organization. Known locally as Sage, the hospital was established in 1978 and operates on 110 acres of leased land within Apache County, Arizona. Designated as a Tribal Health Corporation (THC) by the Navajo Nation, Sage plays a vital role in providing high-quality, culturally sensitive healthcare to the Navajo community.
The Project: Expanding Healthcare on the Navajo Nation
This transformative project includes constructing a new state-of-the-art hospital, an expanded outpatient clinic, administrative facilities, and additional staff housing on Sage’s Ganado campus. With a total project budget of $177 million, construction began in the Fall of 2021 and culminated in a grand opening ceremony on August 23, 2024. The hospital began operating in its new facilities on December 3, 2024, offering expanded services such as surgery, dialysis, an intensive care unit, and labor and delivery.
Innovative Financing for Long-Term Growth
The $80 million bond transaction provided critical reimbursement for project costs, a debt service reserve fund, and capitalized interest, while covering financing-related expenses. The bonds are backed by a gross revenue pledge and first lien on Sage’s property, secured through a mix of net patient revenues and unique funding agreements designed to support debt service payments. These non-rated bonds carry a 30-year maturity, reflecting the long-term vision and commitment to the Navajo Nation’s healthcare infrastructure.
Blaylock Van, LLC is honored to have played a role in advancing the Sage’s mission of providing exceptional healthcare services to the Navajo community. This successful financing underscores our dedication to empowering underserved communities through innovative financial solutions.
