Ziegler has had a long partnership with Friendship Village of Dublin that we are very proud of. This latest financing represents an opportunity to reposition 70% of its capital structure by capturing near all-time low fixed interest rates...
Chicago, IL (PRWEB) December 15, 2014
Ziegler, a specialty investment bank, is pleased to announce the successful closing of the $23,315,000 fixed-rate, Fitch rated “A-“ (stable), Series 2014 Bond issue for Friendship Village of Dublin, a long-standing Ziegler client with over 12 financing events since the early 1980’s. Friendship Village of Dublin, Ohio, Inc. (FVD) was incorporated in 1978 as an Ohio not-for-profit corporation for the purpose of providing housing, health care, home health, and other related services to the elderly.
Today, FVD maintains a 366-unit Type A (Lifecare) continuing care retirement community (CCRC) totaling 450,000 square feet on a 23-acre campus. These units are comprised of 244 Independent Living Apartments, 16 Independent Living Villas, 46 Assisted Living studio apartments (13 designed as memory care), and a 60-bed skilled nursing facility. FVD has earned national accreditation from CARF-CCAC and its skilled nursing facility earned a five-star rating from CMS/Medicare. FVD is currently managed by Life Care Services.
Proceeds of the Series 2014 Bonds will be used to (a) refund the outstanding Series 2004B VRDBs ($17.46 million), (b) reimburse the Village for the costs of the construction of 12 Villas in the last two years ($4.75 million), (c) fund future capital expenditures including four Villas ($2.29 million), and (d) to pay a portion of issuance costs in connection with the Series 2014 Bonds. The Series 2014 Bonds did not fund a debt service reserve fund (DSRF); FVD will fund a DSRF if its days cash on hand (DCOH) falls below 600 days.
Notably, this is the first time Ziegler has underwritten fixed-rate senior living bonds without a DSRF funded at closing. Ziegler leveraged FVD’s exceptional liquidity (pro forma DCOH over 1,200 days) to structure a “springing” debt service reserve fund whereby FVD will fund its DSRF if its DCOH falls below 600 days and is subsequently released if DCOH exceeds 900 days. As a result of this structure, FVD reduced the par amount of the Series 2014 Bonds by approximately 8% ($1.9 million), which resulted in reducing the principal and interest requirements by almost $4 million over the life of the issue.
Tom Meyers, Managing Director in Ziegler’s senior living practice, commented “Ziegler has had a long partnership with Friendship Village of Dublin that we are very proud of. This latest financing represents an opportunity to reposition 70% of its capital structure by capturing near all-time low fixed interest rates at an average of 4.10% for the next 30 years. This will provide Friendship Village of Dublin with a very stable capital base as they continue to pursue various projects included in their Master Plan over the next five years.”
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.
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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