Ziegler Closes $150 Million Financing for Covenant Retirement Communities

Share Article

Ziegler, a specialty investment bank, is pleased to announce the successful closing of the $150,170,000 Series 2012 financing for Covenant Retirement Communities (CRC). CRC is a multi-site system that has 12 continuing care retirement communities (CCRCs) located in eight different states (IL, CO, WA, CA, FL, CT, MI, & MN). CRC has been serving seniors through its mission since 1886. Today, CRC is the fifth largest not-for-profit senior living provider nationally, as ranked by the LeadingAge Ziegler 100, with approximately 4,646 total units comprised of 3,050 independent living units, 721 assisted living units, and 875 skilled nursing beds.

News Image
This financing completes CRC's refundings and debt restructurings initiated in 2011. These 2012 Bonds will improve the System's cash flow from taking advantage of record low interest rates and reimburse themselves from prior...

Ziegler, a specialty investment bank, is pleased to announce the successful closing of the $150,170,000 Series 2012 financing for Covenant Retirement Communities (CRC). CRC is a multi-site system that has 12 continuing care retirement communities (CCRCs) located in eight different states (IL, CO, WA, CA, FL, CT, MI, & MN). CRC has been serving seniors through its mission since 1886. Today, CRC is the fifth largest not-for-profit senior living provider nationally, as ranked by the LeadingAge Ziegler 100, with approximately 4,646 total units comprised of 3,050 independent living units, 721 assisted living units, and 875 skilled nursing beds.

Proceeds of the Series 2012 Bonds will be used to (i) refund, on a current basis, seven series of outstanding bonds (1998IL, 1999MN, 2001IL, 2002A&B IL, 2002A&B CO), (ii) provide approximately $20 million for general campus improvements throughout the system, (iii) fund a debt service reserve fund; and (iv) pay the costs of issuance. The $150,170,000 of Series 2012 Bonds are rated BBB+ (stable) from FitchRatings and BBB- (stable) from Standard & Poors.

Don Carlson, Senior Managing Director and Vice Chairman at Ziegler, commented, “This financing completes CRC's refundings and debt restructurings initiated in 2011. These 2012 Bonds will improve the System's cash flow from taking advantage of record low interest rates and reimburse themselves from prior capital expenditures with new money. This transaction completes the restructuring of their aggregate debt that was begun in 2011, providing CRC with a very conservative capital structure.” 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.

Share article on socal media or email:

View article via:

Pdf Print

Contact Author

Christine McCarty
Ziegler
312 596 1617
Email >
Visit website