CARTI announced Thursday that it has refinanced more than $51 million in refunding bonds for its flagship campus in Little Rock.
The nonprofit said this refinancing will save it $3.3 million in interest over the next 22 years and “establish a springboard” to be able to finance future projects across the state.
Crews & Associates served as the sole underwriter, and the Arkansas Development Finance Authority was the conduit bond issuer.
“This is a new day for CARTI,” President and CEO Adam Head said in a news release. “The bond refinancing allows us to be more nimble in future expansion opportunities, allowing us to identify new underserved communities across the region who would benefit from our leading edge cancer care. This demonstrates the significant progress we’ve made over the last three years to transform our organization’s finances and hit our operational targets.”
CARTI was struggling financially when Head was hired in September 2017.
But the nonprofit’s finances have swung in a positive direction since its bond rating was downgraded for missing operating targets over several consecutive years the same month he joined the organization.
The nonprofit had about $10 million in operating income before depreciation for FY 2020.
In addition, CARTI has opened numerous treatment locations and clinics across the state as well as three cancer centers in Conway, Russellville and North Little Rock. It is building two more — in El Dorado and Pine Bluff — that are set to open this year and next year, respectively.
The nonprofit has 19 locations in Arkansas now.