Ziegler Closes $30.8 Million Financing for Presbyterian Manors, Inc.

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Ziegler, a specialty investment bank, is pleased to announce the successful closing of the $30,800,000 Series 2014 Bond financing for Presbyterian Manors, Inc., a long-standing Ziegler client. Presbyterian Manors, Inc. (PMI) was established in 1948, as United Presbyterian Foundation of Kansas (UPFK) as a not for profit corporation.

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This financing will help PMI complete the transformation and repositioning of their Wichita campus and continue their market leadership in central Kansas.

Ziegler, a specialty investment bank, is pleased to announce the successful closing of the $30,800,000 Series 2014 Bond financing for Presbyterian Manors, Inc., a long-standing Ziegler client. Presbyterian Manors, Inc. (PMI) was established in 1948, as United Presbyterian Foundation of Kansas (UPFK) as a not for profit corporation. The Series 2014 Bonds were issued for the benefit of an obligated group consisting of PMI and Aberdeen Village, Inc. (AVI), a senior living community located in Olathe, Kansas.

PMI and its parent, Presbyterian Manors of Mid-America, Inc. (PMMA) are headquartered in Wichita, Kansas. PMI and AVI own a total of 17 senior living communities throughout Kansas and Missouri, comprised of 939 nursing beds, 514 assisted living units, and 596 independent living units, all of which are managed by PMMA. In addition, PMI is affiliated with Aberdeen Heights, a new senior living campus located in St. Louis County. Aberdeen Heights and PMMA are not members of the PMI Obligated Group with respect to the Series 2014 Bonds.

The 2014 Bonds totaling $30,800,000 consist of $17,400,000 of fixed-rate Series 2014A Bonds, $5,550,000 of TEMPS-80 Series 2014B-1 Bonds, $4,600,000 of TEMPS-50 Series 2014B-2 Bonds, and $3,250,000 of taxable Series 2014C Bonds. The Series 2014A Bonds were issued as permanent debt, i.e., debt that will be amortized on a level debt service basis during 2019-2049, with a 35-year final maturity. The TEMPS-50, TEMPS-80 and taxable bonds we issued as temporary debt – the debt that will be repaid using entrance fees during the initial fill-up period of the new project described below. The temporary debt was sized so that it can be fully repaid from initial entrance fees once the project reaches 80% occupancy. The taxable bonds were needed for a variety of items including a portion of the project costs, certain issuance costs, and a portion of the funded interest.

The Series 2014 Bonds are being issued to: 1) finance the development of the Phase II addition of 90 Independent Living Units; 2) purchase a new corporate office building and provide for certain renovations and FF&E; 3) fund a Debt Service Reserve Fund for each series of bonds; 4) fund interest on the Phase II project for a period of 19.5 months; 5) fund interest on the Corporate Office Building for a period of 12 months; and 6) pay certain costs of issuance related to the Series 2014 Bonds.

The 2014 Project includes the second phase of the redevelopment of PMI’s Wichita community, as well as the acquisition and renovation of a new corporate office building. The Phase II Project includes the demolition of the former assisted living center and health center and the construction of a building which is expected to include 90 new independent living apartments on the site of the former assisted living center and health center. There will be several models of the new independent living apartments. Over 75% of the independent living units were pre-sold at the time the financing closed. Greystone is serving as co-developer with PMI with respect to the Phase I and Phase II projects. Financing for the first phase of redevelopment at the Wichita campus occurred in 2013 and upon completion the project will reposition the assisted living and nursing service lines while adding memory care units. Construction on these projects is anticipated to be completed in November 2014. PMI has embarked on the redevelopment of its Wichita campus in order to offer superior facilities and services to its residents while positioning itself to compete successfully for years to come. With over 65 years in the senior living industry, PMI has an excellent reputation and name recognition throughout Missouri and Kansas.

Will Carney, Managing Director in Ziegler’s senior living finance practice, stated, “This financing will help PMI complete the transformation and repositioning of their Wichita campus and continue their market leadership in central Kansas.”

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.

About Ziegler:
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 and structured municipal 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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Leslie Weir
Ziegler
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