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KeyBanc to restructure $600M behavioral health deal that failed to clear market despite 8% yield
['Caitlin Devitt Has Covered The Municipal Bond Market Since She Began Her Journalism Career At The Herald Newspapers On The South Side Of...', 'Senior Reporter', 'Buy-Side Specialist', 'Northeast Reporter', 'Staff Writer']
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Keybanc Capital MarketsOne of the largest high-yield municipal bond borrowings this year, a $610 million deal for a series of New Jersey behavioral health centers, failed to clear the market Tuesday despite offering yields as high as 8.25%.
Many investors are unfamiliar with the behavioral health sector, which is poised to grow, O'Grady said.
Behavioral health is still in the early stages of development as a defined municipal asset class," he said.
Behavioral health has a large potential pipeline of deals that KeyBanc is working to develop, Plank said.
"Our work in behavioral health is part of a deliberate, years-long strategy and not a one-off transaction or opportunistic deal," Plank said.