Advised on a Rare Municipal Bond–Financed Sale of a Behavioral Health Provider

A New Jersey–based behavioral health provider pursued a sale to a nonprofit buyer through a municipal bond-financed transaction. The structure represented only the fourth municipal bond–financed transaction in the behavioral health sector nationwide, a notable departure from the traditional use of such financing for hospitals, skilled nursing facilities, and other certificate-of-need-regulated providers.

The transaction involved the issuance of taxable and tax-exempt revenue and capital appreciation revenue bonds by the Wisconsin Public Finance Authority, totaling $141 million and including proceeds allocated for capital improvements. Prior to the sale, the provider acquired the underlying real estate associated with its treatment facilities as part of the transaction structure.

Buttaci Leardi & Werner served as lead mergers and acquisitions counsel, coordinating among the nonprofit buyer, public issuer, underwriter, and multiple sets of counsel. The transaction required expedited regulatory approvals, including approvals from the New Jersey Department of Health, which were secured within a compressed timeframe.

The transaction closed on July 1, 2025, resulting in a successful exit for the owners and establishing a rare precedent for municipal bond financing in the behavioral health sector.