Chicago, IL (PRWEB) June 23, 2014
Ziegler, a specialty investment bank, is pleased to announce the successful closing of the $140,305,000 MonteCedro Inc. fixed-rate Series 2014 Bonds. MonteCedro Inc. (MonteCedro) is a California not-for-profit public benefit corporation (the Corporation) that was established in February 2014 to own and operate a continuing care retirement community (CCRC) consisting of approximately 186 independent living units and approximately 20 assisted living units and related parking and other facilities, to be constructed in Altadena, California.
The proceeds of the 2014 Bonds will be loaned to the Corporation to (1) finance the cost of the construction and equipping of the facility, (2) repay a taxable loan to the Corporation from Bank of America, N.A., the proceeds of which were used to construct a portion of the project, (3) pay capitalized interest on the Bonds through May 31, 2016, (4) fund a Debt Service Reserve Account for the benefit of the Bonds, and (5) pay certain expenses incurred in connection with the issuance of the Bonds. The Series 2014 Bonds were rated “A” by both S&P and Fitch based on credit enhancement provided by Cal-Mortgage.
In 2004 Ziegler began advising the Episcopal Communities & Services (ECS) Board on growth and operational benchmarking. Ziegler assisted management in converting an auction rate debt issue to a fixed rate in 2010 after the recession caused disruption of the insurance and auction rate markets. In 2012, Ziegler took ECS’s obligated group through the rating process, leading to an “A minus” rating with Fitch and a refinancing of all obligated group debt. A master indenture was put in place at that time in anticipation of the MonteCedro issuance on a non-recourse basis. Gaining Cal-Mortgage approval to insure the start-up without support from the Obligated Group was a groundbreaking development in California.
“All of us at Ziegler are so pleased to see our long-time client, Episcopal Communities and Services, in a position to serve even more seniors in the southern California market once MonteCedro opens. MonteCedro will be one of only a handful of new not-for-profit CCRCs built in California in the past 15 years, and is evidence of ECS’s strong commitment to growth of its organization and its mission,” commented Mary Muñoz, Managing Director in 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.
The Ziegler Companies, Inc. (PINKSHEETS: ZGCO), together with its affiliates (Ziegler), is a specialty investment bank with unique expertise in complex credit structures and advisory services. Nationally, Ziegler is ranked as one of the leading investment banking firms in its specialty sectors of healthcare, senior living, religion, and education, as well as general municipal and structured finance. Headquartered in Chicago, IL with regional and branch offices throughout the U.S., Ziegler provides its clients with capital raising, corporate finance, FHA/HUD, strategic advisory services and research. Ziegler serves institutional and individual investors through its wealth management and capital markets distribution channels.
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. The forward-looking statements are subject to a number of risks and uncertainties, in particular, the overall financial health of the securities industry, the strength of the healthcare sector of the U.S. economy and the municipal securities marketplace, the ability of the Company to underwrite and distribute securities, the market value of mutual fund portfolios and separate account portfolios advised by the Company, the volume of sales by its retail brokers, the outcome of pending litigation, and the ability to attract and retain qualified employees.
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