Ziegler is pleased to have the opportunity to work with the Seabury team on the first phase of a multi-phase expansion of their campus. The organization has a long history of serving seniors dating back to the late 1880’s...
Chicago, IL (PRWEB) April 20, 2015
Ziegler, a specialty investment bank, is pleased to announce the successful closing of the $34,510,000 tax-exempt, fixed-rate Series 2015A Church Home of Hartford’s Series 2015A Bonds. Church Home of Hartford d/b/a Seabury (the Obligor), a new client to Ziegler, is a Connecticut not-for-profit corporation formed in 1876.
In 1992, the Obligor established Seabury, an interfaith, active Type-A continuing care retirement community in Bloomfield, Connecticut (the Community or Seabury). The Community is located on an approximately 68-acre site and currently consists of 193 independent living units, which include 34 independent living cottages and five villas, and 154 independent living apartments, 49 assisted living units, 58 memory care units and 60 skilled nursing beds. A subsidiary of the Obligor, Seabury Memory Care Centers, Inc. (SMCCI) currently owns and operates the 58 memory care units within the Community stated above. Pursuant to an Agreement and Plan of Merger between the Obligor and SMCCI, upon filing of a certificate of merger (occurring upon issuance of the Series 2015A Bonds), SMCCI will merge into the Obligor with the Obligor as the surviving entity.
Proceeds of the Series 2015A Bonds will be used to currently refund two outstanding bank loans, terminate an existing interest rate swap, provide reimbursement for previous capital expenditures, fund the first phase of a multi-phase repositioning strategy, fund a debt service reserve fund and pay a portion of the costs of issuance for the Bonds. Fitch Ratings assigned a rating of BB (stable) to the Series 2015A Bonds.
The first phase of the repositioning will include an extensive renovation and expansion to the main building on the Seabury campus including a new front entrance and expanded lobby, renovated reception and security areas, administrative/marketing suite renovations, a new human resources suite, new accounting suite, renovated lounge, kitchen renovation and expansion of existing private dining room, and additional parking among other campus improvements. Greenbrier Development, LLC is serving as development consultant.
It is currently anticipated that a subsequent financing may occur late in 2015 to fund additional phases of development consisting of approximately 65 new independent living units, a new health care building expansion with additional skilled nursing beds and assisted living units, a chapel, and a new space for Seabury’s community outreach service, as well as other renovations. The potential subsequent financing will total approximately $72 million with temporary debt of $23 million and permanent debt of $49 million. Amortization of the future permanent debt is anticipated to be deferred to account for the amortization of the Series 2015A Bonds in order to approximate level aggregate annual debt service.
Rich Scanlon, Managing Director in Ziegler’s senior living practice, stated, “Ziegler is pleased to have the opportunity to work with the Seabury team on the first phase of a multi-phase expansion of their campus. The organization has a long history of serving seniors dating back to the late 1880’s. The successful completion of this expansion program will provide the latest in amenities and services allowing Seabury community members to enjoy retirement living to the fullest. We look forward to the completion of a financing for the later stages of the expansion by the end of 2015.”
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., together with its affiliates (Ziegler), is a privately held, 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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