Ziegler Closes $38.225 Million Willow Valley Communities Financing

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Ziegler, a specialty investment bank, is pleased to announce the successful closing of the $38,225,000 tax-exempt, fixed-rate Series 2016 Bond issue for Willow Valley Communities.

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We were able to take advantage of this low fixed-rate market to reduce the organization’s variable interest rate exposure in addition to funding the expansion project.

Ziegler, a specialty investment bank, is pleased to announce the successful closing of the $38,225,000 tax-exempt, fixed-rate Series 2016 Bond issue for Willow Valley Communities.

Willow Valley Communities (the Corporation or Willow Valley Communities) was incorporated on December 6, 1982, originally under the name Willow Valley Manor, as a not-for-profit corporation under the Pennsylvania Non Profit Corporation Law of 1972. The Corporation changed its name from “Willow Valley Manor” to “Willow Valley Retirement Communities” effective March 2, 2000 and from “Willow Valley Retirement Communities” to “Willow Valley Communities” effective October 22, 2013.

The Corporation owns and operates three retirement communities on two campuses in the County of Lancaster, Pennsylvania, known as 1) Willow Valley Manor, which includes the Providence Park at Willow Valley expansion, 2) Willow Valley Lakes Manor, which includes the Willow Gables and Spring Run at Willow Valley expansions; and, 3) Willow Valley Manor North which includes the Willow Valley Manor North Garden Apartments expansion. The land, buildings and related facilities at Willow Valley Manor, Willow Valley Lakes Manor and Willow Valley Manor North and the land, buildings and related facilities to be financed with the proceeds of the 2016 Bonds.

The Corporation operates a lifecare at home membership based program in Lancaster County under the trade name of SmartLife VIA Willow Valley to deliver care and services in the member’s home. The Corporation is the sole Owner of Connections at Home VIA Willow Valley, LLC, a home care agency that provides services including companion and homemaking services, wellness visits and personal assistance.

A portion of the proceeds of the 2016 Bonds will be utilized for the construction, equipping and furnishing of The Vistas at Providence Park. The Vistas will be a five-story, 53-unit residential apartment building located on the Manor Campus. Several unique features of these 1,700-2,000 square-foot residences will be large, oversized windows and classic, elegant finishes throughout. In addition, this approximately 160,000 square-foot building will include underground parking facilities and a rooftop lounge. The general contractor and architect for the project are CCS Building Group and RLPS Architects, respectively.

The Corporation will use the proceeds from the sale of the Series 2016 Bonds to (i) currently refund a portion of the Lancaster Industrial Development Authority Adjustable Rate Demand Revenue Bonds, Series A of 2009 (Willow Valley Retirement Communities Project) consisting of $9,585,000 of the outstanding $17,925,000 principal amount, and a portion of the Lancaster Industrial Development Authority Adjustable Rate Demand Revenue Bonds, Series B of 2009 (Willow Valley Retirement Communities Project) consisting of $9,585,000 of the outstanding $17,925,000 principal amount (ii) finance and /or reimburse the cost of The Vistas at Providence Park project; and (iii) pay costs of issuance of the 2016 Bonds.

The Series 2016 Bonds are tax-exempt, fixed rate Bonds rated ‘A’ with a stable outlook by Fitch Ratings and were offered without the use of a debt service reserve fund nor a springing debt service reserve fund. The Bonds are structured to provide level aggregate annual debt service through final maturity in 2039. The arbitrage yield and yield to maturity on the $38,225,000 issue are 2.885% and 3.367%, respectively.

“Fitch truly saw the value of the organization’s strong management team and commitment to providing unsurpassed amenities and care,” commented, Amy Castleberry, Senior Vice President in Ziegler’s Senior Living Finance practice. “We were able to take advantage of this low fixed-rate market to reduce the organization’s variable interest rate exposure in addition to funding the expansion project.”

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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