Chicago, IL (PRWEB) January 31, 2014
Ziegler, a specialty investment bank, is pleased to announce the successful closing of the $43,975,000 Fitch “BB+” rated, fixed-rate Series 2013A Bond issue for Greencroft Obligated Group. At the time of issuance, the Greencroft Obligated Group consists of Greencroft Goshen, Hamilton Grove and Southfield Village. Each of the Obligated Group members is a 501(c)(3) corporation and each owns and operates a continuing care retirement community.
Greencroft Goshen was founded in 1964 and is located in Goshen, Indiana. Hamilton Grove was founded in 1920 and is located in New Carlisle, Indiana. Southfield Village was founded in 1991 and is located in South Bend, Indiana. The Obligated Group members all belong to Greencroft Retirement Communities (GRC), the sole corporate member of the Obligated Group. GRC is one of the nation’s largest not-for-profit multi-site senior living organizations, ranked at #45 on the LeadingAge Ziegler 100 in total senior living units owned in 2013. The GRC system comprises six continuing care retirement communities, four elderly housing providers, a foundation and a home health agency located in various Indiana locations and one Ohio location. In total, GRC is made up of 1,811 total units, including the Greencroft Obligated Group, the GRC supported organizations, and the GRC affiliated organizations. The Obligated Group is made up of 992 total units including 419 independent living units, 188 assisted living units and 385 nursing care beds.
The $43,975,000 Series 2013A Bonds were issued simultaneously with the Series 2013B Bonds, which total $31,000,000 and were directly purchased by Huntington National Bank. The 2013A and 2013B Bonds were issued to: 1) refund all outstanding indebtedness of Greencroft Obligated Group, inclusive of the Series 1998, 1999, 2000 and 2008 Bonds; 2) finance the costs of constructing an addition to the existing Greencroft Goshen Healthcare facility and related improvements; 3) fund a Series 2013A Debt Service Reserve Fund; and 4) pay certain costs of issuance of the Series 2013 Bonds.
In connection with the Series 2013 financings, three previously independent credits are being merged to form the Greencroft Obligated Group. Management has been interested in doing this for a number of years and the present need to issue bonds for capital projects and to refinance certain existing indebtedness created an excellent opportunity to move forward with the Greencroft Obligated Group. Additional communities may be brought into the Obligated Group in the future if deemed to be beneficial. The financing also represented a good time to pursue a rating for the first time. Fitch rated the financing “BB+” with a stable outlook.
In an effort to meet the present and future demands for healthcare of seniors in Goshen, Greencroft Goshen has been engaged in a redevelopment plan to renovate its healthcare facility which currently consists of 240 skilled nursing beds. The first Phase of the Project consists of a 2-story, 64 to 66-bed healthcare building addition creating four new households with 16 rooms in each household, a total of approximately 47,000 square feet of new construction. The main goal of the new project is to create a more homelike environment with more private rooms and baths. Although new units will be added, certain older units will be taken offline, and the net effect is that upon completion, the number of nursing beds will be relatively unchanged. In addition, a new “Main Street” town center will be added and other improvements on the Goshen campus, to refresh and modernize so that Greencroft Goshen can remain competitive.
“Ziegler is grateful to have had the opportunity to serve our friends at Greencroft once again. From our first financing for Greencroft Goshen in the 1980s to this most recent transaction, which builds financial strength through the creation of a three-campus Obligated Group - Greencroft Goshen, Hamilton Grove and Southfield Village - Ziegler has been pleased to be a partner in Greencroft’s organizational growth for more than 30 years,” commented Steve Johnson, Managing Director is Ziegler’s Senior Living practice.
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.
For more information about Ziegler, please visit us at http://www.Ziegler.com.
Since 1902, Ziegler has grown to become a full-service, specialty investment bank and broker-dealer. Ziegler provides its clients with capital raising, strategic advisory services, equity and fixed income sales & trading, wealth management, and research. Specializing in the healthcare, senior living, education, and religion sectors, Ziegler is committed to advancing the health, wealth and well-being of our clients.
Certain comments in this news release represent forward-looking statements made pursuant to the provisions of the Private Securities Litigation Reform Act of 1995. This client’s experience may not be representative of the experience of other clients, nor is it indicative of future performance or success.
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