Ziegler Closes $68.8 Million Financing for Goodwin House

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Ziegler, a specialty investment bank, is pleased to announce the successful closing of the $68,815,000 tax-exempt, fixed-rate Series 2015 Bond issue for Goodwin House, a long-standing client of Ziegler.

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In many respects, this successful pricing is a testament to the stature and respect that Goodwin House enjoys in the capital markets, as we essentially asked investors to place a great deal of trust in the Goodwin House Board and Executive Leadership...

Ziegler, a specialty investment bank, is pleased to announce the successful closing of the $68,815,000 tax-exempt, fixed-rate Series 2015 Bond issue for Goodwin House, a long-standing client of Ziegler.

Goodwin House Incorporated (Goodwin House) is a not-for-profit Virginia corporation incorporated in 1955. Goodwin House owns and operates two Life Care continuing care retirement communities (CCRCs) in Northern Virginia ranking Goodwin House 4th in Virginia and 94th in the nation according to the 2014 LeadingAge Ziegler 150. Goodwin House is in the advanced planning stages of a $68.2 million project at the Alexandria campus (the Positioning) that will include: construction of a new five-story, small-house concept health center that will house the skilled nursing units (Center of Excellence); repurposing of existing Health Care Facilities (vacated by the units moving to the Center of Excellence) into 16 new Independent Living Apartments and 11 Assisted Living Units; upgrading and improvement of dining and community spaces; and upgrading and improvement of service functions.

The Series 2015 Bond financing is unique in that Goodwin House did not have a guaranteed maximum price contract, certificate of public need, or building permits at the time of closing; to offset potential bondholder concerns about the absence of such items, Goodwin House developed a highly credible “alternative plan of finance” that would deploy Series 2015 Bond proceeds for alternative capital uses in the event that any of these “externalities” failed to materialize as expected.

Proceeds of the $68,815,000 Series 2015 Bonds will be used, together with a $25 million equity contribution from Goodwin House and other moneys available therefor, to (1) refund the outstanding principal amount of the Series 2005 Variable Rate Demand Bonds, (2) finance the costs of improvements and additions to the Alexandria campus known as the Positioning (detailed above), (3) pay certain costs of issuance of the Series 2015 Bonds, and (4) fund a debt service reserve fund for the Series 2015 Bonds. The Series 2015 Tax-Exempt Fixed Rate Bonds have a 2050 final maturity (35-years), are BBB rated from Fitch and resulted in an aggregate yield to maturity 4.48%. Davenport & Company, LLC served as a 15% co-manager on the transaction.    

Michael Kelly, Managing Director in Ziegler’s senior living practice, stated, “In many respects, this successful pricing is a testament to the stature and respect that Goodwin House enjoys in the capital markets, as we essentially asked investors to place a great deal of trust in the Goodwin House Board and Executive Leadership Team to execute a transformative construction program for which many variables remained in question; we are highly confident that both Goodwin House and its investors will be pleased with the outcome, which is nothing less than Goodwin House’s sustained financial viability and leadership excellence in providing high quality of life options to seniors in the Northern Virginia region.”

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.
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Leslie Weir
Ziegler
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