Ziegler Closes $22 Million BHI Senior Living, Inc. Financing

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Ziegler, a specialty investment bank, is pleased to announce the successful closing of the $22,015,000 tax-exempt, fixed-rate BHI Senior Living, Inc. Series 2013A Bonds. BHI Senior Living, Inc. (BHI) (d/b/a Baptist Homes of Indiana, Inc., rated BBB+ by Fitch, is a not-for-profit corporation whose roots extend back to 1904.

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BHI’s strong investment-grade rating of BBB+ from Fitch, combined with the investors’ very positive view of BHI’s management team, historical operations, controlled growth and sound capital structure, set them apart in an otherwise challenging market...

Ziegler, a specialty investment bank, is pleased to announce the successful closing of the $22,015,000 tax-exempt, fixed-rate BHI Senior Living, Inc. Series 2013A Bonds. BHI Senior Living, Inc. (BHI) (d/b/a Baptist Homes of Indiana, Inc., rated BBB+ by Fitch, is a not-for-profit corporation whose roots extend back to 1904. BHI and BHI Foundation, Inc. (the Foundation) are the current members of the Obligated Group.

BHI Foundation, Inc. was established in 1986. Separately incorporated and with its own governing board of directors, charitable gifts and investments may be made to the Foundation to support the mission of the Corporation. Funds provided through the Foundation are to be utilized at the Corporation’s communities to help fund improvements such as renovations, expansions, and equipment purchases; to assist residents who have exhausted their financial resources; and to provide additional benefits for the Corporation’s communities as determined by the Foundation’s board of directors.

BHI Senior Living, Inc. owns and operates three continuing care retirement communities (CCRC) and is the managing agent for two separately incorporated HUD subsidized apartment complexes for older adults and those requiring the features of a specially designed living unit. All properties are located in Indiana. Its three CCRCs are: Hoosier Village (Zionsville, IN), The Towne House (Ft. Wayne, IN), and Four Seasons (Columbus, IN), and consist of 139 independent living units (ILU), 398 assisted living units and 225 licensed skilled nursing beds.

Proceeds from the Series 2013A Bonds will be used to fund various capital projects estimated to cost approximately $18,700,000, plus a portion of the interest on the bonds during the construction period, a Series 2013A Debt Service Reserve Fund and costs of issuance. The capital projects span all three campuses and consist of 36 new ILUs, 36 new memory care units, demolition costs, architectural drawings for possible expansion projects, and various other renovation and infrastructure projects. Over time, the new projects are expected to add cash to the balance sheet through reimbursement for the payment of prior capital expenditures and entrance fees on the new units. New projects will also generate incremental revenues which should be accretive over time to the debt service coverage ratio and other performance benchmarks.

Steve Johnson, Managing Director in Ziegler’s Senior Living practice, stated, “BHI’s strong investment-grade rating of BBB+ from Fitch, combined with the investors’ very positive view of BHI’s management team, historical operations, controlled growth and sound capital structure, set them apart in an otherwise challenging market for Borrowers. The organization made a strategic decision to move forward with the financing to effectively lock in current rates and enhance its campuses for purposes of generating continued growth. BHI continues to be Indiana’s only CCRC operator to receive a rating of BBB+ or higher.”

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.

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 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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