The Mental Health Center of Denver, CO (“MHCD”) provides comprehensive and accessible mental health and substance abuse treatment, housing, education and employment services for adults, and is a leading source of treatment of children, teens and families. MHCD’s mission is to enrich the lives and minds of its clients by focusing on strengths and recovery. With a staff of over 400, MHCD presently serves 21,000+ clients per year at 36 locations including 18 Denver public schools.
To better serve their clients, MHCD sought to consolidate its four downtown clinics to provide adult mental health services in one single location.
Solution and Execution
GATES Capital acted as financial advisor to MHCD on the $19,940,000 tax-exempt / taxable refunding and improvement revenue bond. The proceeds of the bonds provided funds to purchase and renovate the 12th and Birch consolidated facility, refinance an outstanding 2001 bond issue and refinance several facility bank loans
GATES Capital solicited indications of interest from several national and local banks and ultimately implemented a draw-down bond structure which negated negative arbitrage during the one year reconstruction project timeframe. With the completion of the renovation of 12th and Birch consolidated facility, MHCD’s new Recovery Center allowed for the expansion of mental health services in the City and County of Denver – providing capacity for 2,000 additional patients.