Chicago, IL (PRWEB) February 08, 2013
Ziegler, a specialty investment bank, is pleased to announce the successful closing of the $71,250,000 fixed-rate, Series 2013 Bond issue for American Baptist Homes of the West’s (ABHOW) Obligated Group. Proceeds will fund a major redevelopment of The Terraces at Los Altos (TLA), ABHOW’s first community, which opened in 1949 on approximately 6.3 acres in Los Altos, California.
Currently, ABHOW is the only member of the Obligated Group. ABHOW directly owns and operates seven CCRCs in California, including The Terraces at Los Altos, and through its home office, provides management services to its affiliated senior housing corporations and limited partnerships, including four additional CCRCs and over 35 low and moderate-income senior rental housing communities. ABHOW’s Obligated Group is rated BBB by Standard & Poor’s and BBB+ by Fitch Ratings.
ABHOW was founded in 1949 as Pilgrim Haven Home Corporation with the establishment of Pilgrim Haven retirement community in Los Altos, California (now The Terraces at Los Altos). Additions were made over the next 40 years, and today TLA has 73 residential living apartments, 14 assisted living apartments, and 65 skilled nursing beds. The last major construction occurred on the campus in the late 1980s. Over the course of the project, 112,000 square feet of building space will be demolished, with only 21,000 square feet being retained; new buildings will comprise approximately 180,000 square feet. Construction of the first phase is underway and is estimated to be ready for occupancy in July 2013. The financing will support the construction and equipping of the final two phases of the project. Following its redevelopment, TLA will consist of 105 residential living units, 30 assisted living units, 16 memory support suites, and 30 skilled nursing beds.
Proceeds of the Series 2013 Bonds will be used to pay certain costs of the redevelopment, expansion, and operation of TLA (other ABHOW funds were used for project costs up to the date of issuance of the Series 2013 Bonds), fund debt service reserve funds for each series, pay a portion of the interest on the Series 2013 Bonds during construction of the Project (approximately 36 months), and pay certain costs relating to the issuance of the Series 2013 Bonds.
Mary Muñoz, Managing Director in Ziegler’s Senior Living practice, stated, “ABHOW has done a superb job of balancing the need to update and re-invest in existing communities with executing on strategic growth projects. The Company is among the strongest in the industry and one of the largest senior living systems, serving seniors across a wide variety of income levels. We are proud to work with ABHOW and its development partners, Greystone Communities and Seniority, to take this organization forward.”
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.