OU Medicine Acquires HCA’s Interests in Oklahoma City Medical System for $1.1B

OKLAHOMA CITY — OU Medicine Inc. has acquired interests in OU Medical System (OUMS), a series of hospitals and medical facilities in and around Oklahoma City. The buyer received nearly $1.1 billion in financing for the transaction. The seller was HCA Healthcare, which sold its full interest in the system.

OU Medicine is an affiliate of University Hospitals Authority and Trust (UHAT). HCA Healthcare is a joint operating company operated by HCA and UHAT.

OU Medicine, a newly formed 501(c)(3) corporation, completed the acquisition with a $900 million bridge financing and $175 million subordinated debt issuance.

Proceeds from the combined nearly $1.1 billion financing were also used to provide liquidity on OU Medicine’s balance sheet, fund a portion of a bed tower expansion and redeem $42.4 million of outstanding UHAT bonds. The bridge financing included $673.4 million of tax-exempt direct purchase senior bonds and a $232.5 million taxable senior loan.

UHAT retained Cain Brothers as its exclusive M&A advisor to negotiate the termination of the existing joint operating agreement with HCA. Cain Brothers also acted as financial advisor to assist in sourcing and structuring the bridge financing.

OU Medicine was formed to own and operate OUMS, a health system of three acute care hospitals, an ambulatory surgery center and related clinics in and around Oklahoma City. It is the largest research, teaching and patient care health system in Oklahoma.

HCA is a provider of healthcare services, made up of locally managed facilities that include 177 hospitals and 119 freestanding surgery centers within 20 U.S. states as well as the United Kingdom.

— Kristin Hiller

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