Ziegler Closes $21.6 Million Kendal at Oberlin Financing

Ziegler, a specialty investment bank, is pleased to announce the successful closing of the $21,600,000 tax-exempt, fixed-rate Kendal at Oberlin Series 2013A Bond issue. Kendal at Oberlin is an Obligated Group which owns and operates a continuing care retirement community in Oberlin, Ohio.

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Kendal at Oberlin is blending exceptionally favorable fixed interest rates with very favorable terms from its long-term banking partner. This financing is a win-win for them.

Chicago, IL (PRWEB) May 15, 2013

Ziegler, a specialty investment bank, is pleased to announce the successful closing of the $21,600,000 tax-exempt, fixed-rate Kendal at Oberlin Series 2013A Bond issue. Kendal at Oberlin is an Obligated Group which owns and operates a continuing care retirement community in Oberlin, Ohio.

Kendal at Oberlin offers the full continuum of care through its residential programs and heath care facilities. It is the mission of Kendal at Oberlin to operate a continuing care retirement community which was founded on Quaker values. The Corporation offers older people a vibrant, diverse, caring community, encouraging individual lifestyles by promoting independence, continuing learning, civic involvement with the wider community, social relationships and excellence in health care.

The 302-unit facility currently consists of 223 independent living residences (175 cottages, 48 apartments), 37 personal care suites (licensed in Ohio as “residential care facility”) and 42 private skilled nursing beds. The Borrower is a subsidiary of Kendal Northern Ohio, which is affiliated with The Kendal Corporation. Kendal Corporation is affiliated with 14 retirement communities in 8 states with a total of 2,508 residential units, 489 assisted living/personal care accommodations and 484 skilled nursing accommodations.

Proceeds from the sale of the Series 2013A Bonds, together with other available funds, to (i) refund and retire the (A) outstanding County of Lorain, Ohio Health Care Facilities Revenue Refunding Bonds, Series 1998A (Kendal at Oberlin) and (B) a loan from Lorain National Bank to the Borrower in the principal amount of $2,380,000; (ii) pay or reimburse the Borrower for the payment of certain costs of acquiring, constructing, installing and equipping the Project, as hereinafter defined; (iii) fund a portion of the debt service reserve fund for the benefit of the Series 2013A Bonds; and (iv) pay certain expenses incurred in connection with the issuance of the Series 2013A Bonds. Standard and Poor’s assigned its ‘A-‘ long-term rating to the Series 2013A Bonds with a stable outlook (upgraded from ‘BBB+’ on the refunded 1998 bonds).

The Series 2013B bonds will consist of a bank direct placement by Lorain National Bank to fund future capital expenditures over the next three years. The Bank has a 13-year commitment through the final maturity of the Series 2013B bonds. Kendal at Oberlin will also amend the existing Series 2009A&B Bank Qualified bonds to match the bank’s commitment to the final maturity of the bonds and to a lower the fixed interest rate.

Tom Meyers, Managing Director in Ziegler’s Senior Living practice, stated, “Kendal at Oberlin is blending exceptionally favorable fixed interest rates with very favorable terms from its long-term banking partner. This financing is a win-win for them. ”

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.


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