Ziegler Closes $64 Million Financing for Episcopal Communities & Services for Seniors

Ziegler, a specialty investment bank, is pleased to announce the successful closing of the $64,160,000 fixed-rate, Series 2012 Bond issue for Episcopal Communities & Services for Seniors (ECS). ECS is a California not-for-profit corporation serving seniors in the greater Los Angeles area.

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ECS is among the top-rated senior living organizations in the country and in California, evidencing this management team’s commitment to operational excellence, and the very attractive locations in which ECS operates. ECS’s management and Board have...

Chicago, IL (PRWEB) December 21, 2012

Ziegler, a specialty investment bank, is pleased to announce the successful closing of the $64,160,000 fixed-rate, Series 2012 Bond issue for Episcopal Communities & Services for Seniors (ECS). ECS is a California not-for-profit corporation serving seniors in the greater Los Angeles area.

Headquartered in Pasadena, California, the corporation owns two continuing care retirement communities (which comprise the Obligated Group): The Canterbury, located in Rancho Palos Verdes, and The Covington, located in Aliso Viejo. The organization’s roots date to 1923, when its first community, The Episcopal Home, opened in Alhambra. ECS is also the founder of the Sophie Miller Foundation and sole member of Community Housing Management Services, neither of which is in the Obligated Group.

The Series 2012 Bonds are being issued to (i) refund prior Series 2002 Bonds insured by Cal-Mortgage; (ii) fund a debt service reserve; and (iii) pay certain costs of issuance. The 2012 refinancing is driven by a desire to create a corporate and capital structure that will facilitate future growth while minimizing current capital costs, as well as to generate annual cash flow savings. Acknowledging ECS’s continued operational strength (days cash on hand exceeding 1,000 days and pro-forma debt service coverage exceeding 3.50x), and the benefit of the refunding, FitchRatings assigned ECS an “A-” investment grade rating with a stable outlook.

Mary Muñoz, Managing Director in Ziegler’s Senior Living practice, commented, “ECS is among the top-rated senior living organizations in the country and in California, evidencing this management team’s commitment to operational excellence, and the very attractive locations in which ECS operates. ECS’s management and Board have made some tough divestiture/closure decisions as well, which in Ziegler’s view speak to smart long-term business strategy and true mission preservation. At an average 3.4% yield, ECS’s cost of fixed-rate capital may be the lowest ever achieved in our industry.”

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


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