Ziegler Closes $73.4 Million Kāhala Nui Financing

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Ziegler, a specialty investment bank, is pleased to announce the successful closing of the $73,400,000 fixed-rate Series 2012 Bond issue for Kāhala Nui. Kāhala Nui is located on a 6.6-acre site in one of the most desirable neighborhoods of Honolulu – north and east of Waikiki Beach and Diamond Head.

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Kāhala Nui has exceeded expectations from the start: it filled extremely quickly, has maintained high occupancy with a strong waitlist, and has established a reputation for excellence in its marketplace. Fitch’s investment grade rating affirms...

Ziegler, a specialty investment bank, is pleased to announce the successful closing of the $73,400,000 fixed-rate Series 2012 Bond issue for Kāhala Nui. Kāhala Nui is located on a 6.6-acre site in one of the most desirable neighborhoods of Honolulu – north and east of Waikiki Beach and Diamond Head.

Kāhala Nui is a “type A” life care community consisting of 270 independent living units, 63 assisted living suites (22 designated as memory support) and 60 private and semi-private skilled nursing suites. Each level of care has its own common and support areas. The community opened in 2005 after being financed by Ziegler in 2003.

The $73,400,000 Series 2012 Bonds are comprised entirely of “BBB-” fixed-rate bonds. The Bonds are being issued to (i) advance refund the Series 2003A fixed-rate bonds; (ii) fund a debt service reserve; and (iii) pay certain costs of issuance. Kāhala Nui took advantage of the low interest-rate environment to reduce debt service by approximately $1.4 million per year. Acknowledging Kāhala Nui‘s continued operational strength and the benefit of the refunding, FitchRatings assigned a “BBB-” investment grade rating.

Mary Muñoz, Managing Director in Ziegler’s Senior Living practice, commented, “Kāhala Nui has exceeded expectations from the start: it filled extremely quickly, has maintained high occupancy with a strong waitlist, and has established a reputation for excellence in its marketplace. Fitch’s investment grade rating affirms the solid financial stature of the corporation, which will be further enhanced with $1.4 million of annual debt service savings from the refinancing. With its strong management team, beautiful physical plant, and proactive Board, Kāhala Nui is truly positioned for long-term success. It typifies the best our industry has to offer.” As one of the nation’s leading underwriters of financing for not-for-profit senior living providers, Ziegler offers 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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Christine McCarty
Ziegler
312 596 1617
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