Ziegler Closes $145 Million Heron’s Key Financing

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Ziegler, a specialty investment bank, is pleased to announce the successful closing of the $145,055,000 non-rated, fixed-rate Series 2015 Bonds, with a combination of permanent and temporary series, for Heron’s Key. Heron’s Key was incorporated as a Washington not-for-profit corporation in 2013 for the purpose of owning and operating a continuing care retirement community to be known as Heron’s Key (the Community), located in Gig Harbor, Washington.

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It is with great pleasure that we announce the closing of the Heron’s Key CCRC transaction.... It is testament to an outstanding Board and leadership team that this transaction was purchased by a large group of 25 investors competing for the bonds...

Ziegler, a specialty investment bank, is pleased to announce the successful closing of the $145,055,000 non-rated, fixed-rate Series 2015 Bonds, with a combination of permanent and temporary series, for Heron’s Key. Heron’s Key was incorporated as a Washington not-for-profit corporation in 2013 for the purpose of owning and operating a continuing care retirement community to be known as Heron’s Key (the Community), located in Gig Harbor, Washington.

The Community is a life care retirement community. Phase I will be comprised of 194 independent living units, 36 assisted living units, and 45 skilled nursing units. The site, zoning and design allow for a future Phase II construction of an additional 88 independent living units and 32 memory care assisted living units. The Community will be developed on a 17.97-acre landscaped and wooded park-like setting in the Harbor Hill area of Gig Harbor, Washington. Independent living units consist of both apartments and cottages, ranging in size from 729 – 1,800 square feet. Landscaped courtyards adjoin the living areas. Assisted living units will be approximately 522 square feet.

Emerald Communities, the sponsor of Heron’s Key, has been a long-standing client of Ziegler. Emerald Communities is also the parent to Emerald Heights, an “A-” rated community located in Redmond, WA. Ziegler most recently served as sole underwriter on Emerald Heights’ Series 2013 Bonds.

“We are very excited that the vision of Heron’s Key in Gig Harbor is becoming a reality. We appreciate our long-term working relationship with Ziegler; their expertise, experience and guidance were instrumental in Emerald Communities realizing this very significant milestone. We’re also very pleased that our new financing partners recognize the value that Heron’s Key brings to the Peninsula, in their confidence in the Board and Management, and of their support in this important expansion of mission for Emerald Communities,” commented, Lisa Hardy, President and CEO of Emerald Communities.

The Corporation will use the Series 2015 Bond proceeds to: (i) finance or reimburse the Corporation for a portion of the costs of the Project; (ii) pay and discharge all or a portion of the Pre-Finance Indebtedness; (iii) pay a portion of the interest on the Bonds; (iv) fund subaccounts of a Debt Service Reserve Fund corresponding to each series of the Series 2015 Bonds; and (v) pay certain costs associated with the issuance of the Bonds.

Mary Muñoz, Managing Director in Ziegler’s senior living practice, commented, “It is with great pleasure that we announce the closing of the Heron’s Key CCRC transaction. The Great Recession slowed an already challenging search for attractive land in the competitive greater Seattle real estate market, but Emerald Communities persevered in its desire to expand. With a very strong campus in Redmond, Washington that is rated “A minus” by Fitch, Emerald Communities believes strongly in the benefit of geographic diversification and in building a home office infrastructure to spread cost for residents as the company grows. It is testament to an outstanding Board and leadership team that this transaction was purchased by a large group of 25 investors competing for the bonds. We are grateful for fourteen years working together with the Emerald Communities organization, and wish them much success with the new Heron’s Key community.”

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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