ZGCO Ziegler Companies Inc (CE)

Ziegler, a specialty investment banking firm, is pleased to announce the successful closing of a $19,510,000 fixed-rate private placement issue and a $45,855,000 variable rate private placement issue for Conway Hospital (Conway). Conway, rated "A3" by Moody's, operates a 210-bed general acute care facility located eight miles west of Myrtle Beach, SC.

Ziegler served as placement agent for the fixed-rate refunding of the hospital's Series 1998 fixed-rate bonds. The transaction has a 10-year fully amortizing term. Ziegler conducted a competitive bid process and sourced attractive terms and a 3.00% interest rate resulting in net present value savings of over $3.2 million or 15.2% of the refunded bonds. The transaction reduced the organization's debt outstanding as the refunded bonds' debt service reserve fund was released.

Ziegler also placed a variable rate conversion of the hospital's Series 2007 insured variable rate demand bonds. The transaction carried a 7-year initial term versus the current standby facility expiration of 2012 allowing Conway to reduce bank renewal risk. Through a competitive bid process, Ziegler optimized pricing with an attractive formula rate of 74% of 1 month LIBOR + 0.96% allowing for capital cost reduction and translating into $1.4 million in net present value savings or 2.9% of the refunded bonds. Ziegler also negotiated the removal of the existing debt service reserve fund allowing the hospital to reduce leverage.

The conversion facilitated the preservation of the hospital's existing LIBOR-based fixed payer swap as a hedge while eliminating swap basis risk inherent in the previous structure. The transaction also mitigated credit counterparty risks and terminated remarketing, bank downgrade and market dislocation risk.

For over 80 years, Ziegler has been assisting hospitals and healthcare organizations with creative, tailored financial solutions for their capital needs. Ziegler offers its healthcare clientele an array of services including investment banking, financial risk management, merger and acquisition services as well as capital and strategic planning. Mike Quinn, Director at Ziegler, states, "Ziegler was thrilled to assist Conway with the restructuring transactions which greatly reduce capital structure risk and provide meaningful debt service savings."

For more information about Ziegler and please visit us at www.Ziegler.com.

About Ziegler: The Ziegler Companies, Inc. (PINKSHEETS: ZGCO) together with its affiliates (Ziegler) is a specialty investment bank with unique expertise in complex credit structures and advisory services. Nationally, Ziegler is ranked as one of the leading investment banking firms in its specialty sectors of healthcare, senior living, religion and education finance, as well as corporate finance and FHA/HUD. Headquartered in Chicago, IL with regional and branch offices throughout the U.S., Ziegler creates tailored financial solutions including bond financing, advisory, private placement, seed capital, M&A, risk and asset management. Ziegler serves institutional and individual investors through its wealth management and capital markets distribution channels.

Certain comments in this news release represent forward-looking statements made pursuant to the provisions of the Private Securities Litigation Reform Act of 1995. This client's experience may not be representative of the experience of other clients, nor is it indicative of future performance or success. The forward-looking statements are subject to a number of risks and uncertainties, in particular, the overall financial health of the securities industry, the strength of the healthcare sector of the U.S. economy and the municipal securities marketplace, the ability of the Company to underwrite and distribute securities, the market value of mutual fund portfolios and separate account portfolios advised by the Company, the volume of sales by its retail brokers, the outcome of pending litigation, and the ability to attract and retain qualified employees.

Christine McCarty 312 596 1617 Email Contact