Ziegler Closes $94 Million Financing for Edgemere

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Ziegler, a specialty investment bank, is pleased to announce the successful closing of the $53,600,000 tax-exempt, fixed-rate Series 2015A and $40,590,000 tax-exempt, fixed-rate, Series 2015B Bond issues for Northwest Senior Housing Corporation. Senior Quality Lifestyles Corporation (SQLC), a Texas not-for-profit organization, serves as the sole corporate member of Northwest Senior Housing Corporation (NSHC).

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Edgemere was the first of the SQLC communities that Ziegler originally financed in 1999 and it is extremely gratifying for Ziegler to be able to contribute to SQLC’s growth overall and see Edgemere become such a strong provider...

Ziegler, a specialty investment bank, is pleased to announce the successful closing of the $53,600,000 tax-exempt, fixed-rate Series 2015A and $40,590,000 tax-exempt, fixed-rate, Series 2015B Bond issues for Northwest Senior Housing Corporation. Senior Quality Lifestyles Corporation (SQLC), a Texas not-for-profit organization, serves as the sole corporate member of Northwest Senior Housing Corporation (NSHC). NSHC owns and operates Edgemere located in the Preston Hollow area of Dallas.

SQLC is the nation’s 30th largest not-for-profit provider of senior living services based upon the 2014 LeadingAge Ziegler 150 ranking and the largest in Texas. SQLC and NSHC comprise the obligated group for the Series 2015A&B Bonds. In addition to NSHC, SQLC is the sole corporate member of the following organizations: Buckingham Senior Living Community, Inc. (Houston, TX), Tarrant County Senior Living Center, Inc. (Ft. Worth, TX), Barton Creek Senior Living Center, Inc. (Austin, TX), Mayflower Communities, Inc. (Carmel, IN), SQLC Senior Living Center at Corpus Christi, Inc. (Corpus Christi, TX), SQLC LSA, LLC (established to provide financial support to certain LLC communities).

Edgemere (the Community) is located on an approximately 16.25-acre site leased from an unrelated third-party. The first phase of the Community, consisting of 256 independent living units, 60 assisted living units, 31 memory support assisted living units and 72 skilled nursing beds, opened in December 2001 and achieved stabilized occupancy in 2004. The second phase of the Community, consisting of 48 independent living units, opened in September 2007 and achieved stabilized occupancy in October 2008.

Proceeds of the Series 2015A Bonds, rated BBB (stable) by Fitch Ratings, and other funds will be used to (i) refund the outstanding Series 2006B variable rate demand bonds totaling $17,240,000; (ii) terminate an existing interest rate swap; (iii) reimburse NSHC for certain routine capital expenditures; (iv) fund certain campus improvements and additions (the “Renaissance Project”); (v) fund interest for 23 months on a portion of the financing; (vi) fund a debt service reserve fund and (vii) pay the cost of issuance of the Series 2015A Bonds. The Renaissance Project will include an expansion of the Community including eight assisted living units, 11 memory support units, and 15 private nursing beds. In addition, a structured parking garage with 72 spaces and an approximately 4,000 square foot performing arts center will be constructed.

Proceeds of the Series 2015B Bonds and other funds will be used to (i) refund the tendered Series 2006A Bonds; (ii) fund a debt service reserve fund and (iii) pay the cost of issuance of the Series 2015B Bonds. The outstanding amount of the Series 2006A term bond due in 2026 was $19,270,000 of which $9,525,000 were tendered or 49.4% at a redemption price of 107.5. The outstanding amount of the Series 2006A term bond due in 2036 was $34,520,000 of which $29,355,000 were tendered or 85.0% at a redemption price of 106.5. Annual debt service savings as a result of the tender and refinancing of the tendered bonds is approximately $132,000 resulting in a net present value benefit of $2.06 million or 5.31% or the par amount of tendered bonds.

The issuance of the Series 2015A and Series 2015B Bonds represents the third and fourth times that Ziegler has served as the underwriter for a transaction for Edgemere and the 10th and 11th times for a SQLC sponsored community.

“Edgemere was the first of the SQLC communities that Ziegler originally financed in 1999 and it is extremely gratifying for Ziegler to be able to contribute to SQLC’s growth overall and see Edgemere become such a strong provider of senior living services in a very competitive Dallas market. Even though Edgemere is approaching 15 years of age it is still recognized nationally as one of the most highly regarded, a reputation that is well deserved and will be enhanced by the Renaissance project” commented Rich Scanlon, Managing Director in Ziegler’s senior living practice.

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 Series 2015A Official Statement and the Series 2015B 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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