For more than 60 years, Ziegler has been honored to serve our friends at Lutheran Life Communities. With this Series 2012 financing, the 120-year mission of the Lutheran Home will begin anew in state-of-the-art facilities designed to empower vibrant...
Chicago, IL (PRWEB) November 07, 2012
Ziegler, a specialty investment bank, is pleased to announce the successful closing of a $98,500,000 tax-exempt, fixed-rate Series 2012 Bond issue for the Lutheran Home and Services Obligated Group (Lutheran Home), a Ziegler client since 1953. The Series 2012 Bonds will be issued through the Illinois Finance Authority.
The Lutheran Home is located in Arlington Heights, Illinois, approximately 30 miles northwest of Chicago. The Lutheran Home and its predecessors have been serving seniors in Illinois since 1892 and moved to the current location in 1953. The campus sits on 16.5 acres and is licensed for 392 skilled nursing care beds and 100 assisted living units. The Lutheran Home’s parent is Lutheran Life Communities. Lutheran Life Communities owns and operates five communities in Illinois and Indiana, with a sixth under development in Naples, Florida. At the present time, Lutheran Life Communities consists of approximately 1,250 private units/beds, 60% of which are skilled nursing care beds.
Proceeds of the Series 2012 Bonds will be used to fund a major repositioning of the Lutheran Home campus, modernizing it inside and out. Although the ultimate unit mix will be roughly the same as it is today, many units and common areas will be substantially upgraded. In particular, each unit will now have a full private bath. In addition to cosmetic improvements, the majority of the mechanical, plumbing and electrical systems will be replaced, and parking will be increased by approximately 35%. A new “West Wing” will be constructed, consisting of 78 private rooms with private baths. The project will be completed in phases so as to cause minimal disruption to occupancy and operations during construction. The primary goal of the financing is to improve the physical plant and amenities so that the Lutheran Home can continue to serve residents in an outstanding fashion for decades to come.
Approximately 72% of the proceeds will be used for the project described above. The balance of the proceeds will be used to refund certain outstanding indebtedness including $23.355 million of outstanding Variable Rate Demand Bonds and a $2.5 million line of credit. After the financing, Lutheran Home will only have fixed-rate debt.
Stephen Johnson, Managing Director in Ziegler’s Senior Living practice, commented, “For more than 60 years, Ziegler has been honored to serve our friends at Lutheran Life Communities. With this Series 2012 financing, the 120-year mission of the Lutheran Home will begin anew in state-of-the-art facilities designed to empower vibrant, grace-filled living for generations to come.”
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.
For more information about Ziegler, please visit us at http://www.Ziegler.com.