Ziegler Secures $44.97M Financing For Presbyterian Retirement Communities.

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Ziegler Secures $44.97M Financing For Presbyterian Retirement Communities.

Ziegler, a specialty investment bank, is pleased to announce the successful closing of the $44,970,000 tax-exempt, fixed-rate Presbyterian Retirement Communities, Inc. Series 2014 Bonds. Presbyterian Retirement Communities, Inc. (PRC) and certain of its affiliates comprise the Obligated Group for the Series 2014 Bonds and constitute the largest group of continuing care retirement communities (CCRCs) in Florida with a total of 3,311 units including 2,093 residential units, 467 assisted living units and 751 skilled nursing units.

Nonprofit.

The Obligated Group is the ninth largest not-for-profit operator of senior living units in the US according to the 2013 LeadingAge Ziegler 100. PRC was originally chartered in 1954 as Presbyterian Homes of the Synod of Florida and opened its first CCRC, Westminster Manor in Bradenton, in 1961. The Obligated Group currently consists of seven members, five of which own and operate nine CCRCs.

Proceeds of the Series 2014 Bonds will be used to refund the outstanding Series 2004A Bonds, reimburse the Obligated Group for previous capital expenditures, fund future capital expenditures, establish a debt service reserve fund and pay the costs of issuance. The refunding portion of the financing provided 14.3% in net present value savings. Separately, the Obligated Group will use a portion of its reimbursement for previous capital expenditures to redeem its outstanding taxable Series 2004B variable rate demand bonds. In conjunction with the issuance of the Series 2014 Bonds, Fitch Ratings upgraded the Obligated Group’s debt to A- (Positive).

Rich Scanlon, Senior Managing Director in Ziegler’s Senior Living practice, stated, “PRC has long been recognized as one of the leaders in senior living within the State of Florida operating nine CCRCs in attractive locations that are maintained in excellent condition through a commitment to continuing capital expenditures. The management team of PRC is well respected within the capital markets based upon their demonstrated record of performance and consistency. These factors combined with an attractive bond market to produce a pricing on the Series 2014 Bonds that allowed PRC to generate significant net present value savings on their refunded bonds and further reduce the organizations exposure to interest rate and bank risk accomplishing the dual objectives that were established at the beginning of the transaction.”

Ziegler.

Ziegler is one of the nation’s leading underwriters of financing for not-for-profit senior living providers. Ziegler offers creative, tailored solutions to its senior living clientele, including investment banking, financial risk management, merger and acquisition services, investment management, seed capital, FHA/HUD, capital and strategic planning as well as senior living research, education, and communication.

For further information on the structure and use of this issue, please see the Official Statement located on the Electronic Municipal Market Access system’s Document Archive.

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