Ziegler Closes $52 Million Financing for American Baptist Homes of the West (ABHOW) Obligated Group

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Ziegler, a specialty investment bank, is pleased to announce the successful closing of the $52,080,000 BBB+ (Fitch) rated, tax-exempt, fixed-rate Series 2015 Bond issue for American Baptist Homes of the West (ABHOW) Obligated Group.

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ABHOW made a strategic decision to reduce its variable rate exposure during this recent low-interest rate period, as well as to finance a portion of its ongoing capital improvement plan. In addition to achieving attractive rates...

Ziegler, a specialty investment bank, is pleased to announce the successful closing of the $52,080,000 BBB+ (Fitch) rated, tax-exempt, fixed-rate Series 2015 Bond issue for American Baptist Homes of the West (ABHOW) Obligated Group.

ABHOW, a long-standing Ziegler client, was founded in 1949 as Pilgrim Haven Home Corporation with the establishment of Pilgrim Haven retirement community in Los Altos, California, now The Terraces at Los Altos. ABHOW directly owns and operates seven CCRCs in California, and provides management services to four affiliated CCRCs and to Beacon Communities, Inc., parent company of ABHOW’s low and moderate-income senior rental housing communities.

Proceeds of the sale of the Bonds and other available funds will be used to (i) refund the outstanding Series 2006 Bonds; (ii) reimburse ABHOW in the amount of $11 million for prior capital expenditures across the communities, and (iii) fund $9 million in additional new money projects. Costs of issuance will be paid with ABHOW equity contributed at closing.

The Bonds were structured to wrap around the existing capital structure, with principal amortizing in years 2016 through 2028, and 2037 through 2045, to create level aggregate debt service. The Bonds were successfully sold with a “springing” Debt Service Reserve Fund, saving ABHOW significant expense vs. a cash-funded Debt Service Reserve Fund.

Mary Muñoz, Managing Director in Ziegler’s senior living practice, commented, “ABHOW made a strategic decision to reduce its variable rate exposure during this recent low-interest rate period, as well as to finance a portion of its ongoing capital improvement plan. In addition to achieving attractive rates, Ziegler and ABHOW avoided funding a debt service reserve fund and closed the deal with a ‘springing’ reserve, further lowering ABHOW’s capital cost. All of us at Ziegler are proud to represent this strong organization that has earned a loyal following among investors and banks.”

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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