Ziegler Closes $135 Million Financing for Covenant Retirement Communities

Share Article

Ziegler, a specialty investment bank, is pleased to announce the successful closing of two financings totaling $135,145,000 in par amount for Covenant Retirement Communities (CRC), a Ziegler client for over 30 years. These include $112,805,000 of Series 2015A fixed-rate refunding bonds and $22,340,000 of Series 2015B variable rate refunding bonds sold directly to a bank.

News Image
It has been very gratifying to be a capital partner with CRC for over 30 years. The organization has had great stability and successes in balancing their financial performance with their mission goals.

Ziegler, a specialty investment bank, is pleased to announce the successful closing of two financings totaling $135,145,000 in par amount for Covenant Retirement Communities (CRC), a Ziegler client for over 30 years. These include $112,805,000 of Series 2015A fixed-rate refunding bonds and $22,340,000 of Series 2015B variable rate refunding bonds sold directly to a bank.

CRC is an Illinois not-for-profit corporation organized for the purpose of owning and operating continuing care retirement communities (CCRCs) in several locations throughout the United States. The Obligated Group consists of 14 communities in eight states (four in California, four in Illinois, one in Colorado, one in Connecticut, one in Florida, one in Michigan, one in Minnesota, and one in Washington). As of December 31, 2014, the Obligated Group had a total unit count of 4,769, comprised of 3,065 independent living units, 755 assisted living units, and 949 skilled nursing beds. CRC is a Type B CCRC system and offers six different types of contracts to residents.

Proceeds of the Series 2015A Revenue Refunding Bonds (the Series 2015A Bonds), together with trustee held funds, were used to (i) advance refund CRC’s outstanding Series 2005 bonds in the amount of $118,110,000, (ii) fund a debt service reserve fund, and (iii) pay certain costs of issuance.

The Series 2015A Bonds closed concurrently with a direct bank placement in the amount of $22,340,000 (the Series 2015B Bonds). The purpose of the bank placement was to refund CRC’s Series 1992 and 1995 variable rate demand bonds and its Series 1998 fixed-rate Bonds. The Series 2015B Bonds were placed with Bank of America, and allowed CRC to achieve more attractive pricing (vs. the Series 1992 and Series 1995 Letter of Credit financings) and an eight-year commitment period was initiated. In addition, the financing allows CRC to maintain its variable rate exposure of approximately 20%. In connection with the financings, CRC’s rating of “BBB+”, stable outlook, was affirmed by Fitch.

“The savings achieved through the refinancing transactions were significant and will benefit residents for years to come as well as opening up opportunities for new projects within our communities. The Ziegler team moved the transaction quickly to market and were creative in developing the ultimate financing structure,” stated, Beth Buikema, senior vice president and chief financial officer of Covenant Retirement Communities.

Don Carlson, Vice Chairman at Ziegler, commented “It has been very gratifying to be a capital partner with CRC for over 30 years. The organization has had great stability and successes in balancing their financial performance with their mission goals.”

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., 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.
# # #

Share article on social media or email:

View article via:

Pdf Print

Contact Author

Leslie Weir
Ziegler
+1 (312) 596-1646
Email >
Visit website