Ziegler Closes $44.185 Million Financing for Sunny Vista Living Center

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Ziegler, a specialty investment bank, is pleased to announce the successful closing of the $44,185,000 unrated, fixed-rate Series 2015 Bond issue for Sunny Vista Living Center.

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Ziegler is pleased to have served our friends at Sunny Vista. To have the opportunity to be a part of Sunny Vista’s organizational growth and to share in its newly offered full continuum of care across generations is fulfilling...

Ziegler, a specialty investment bank, is pleased to announce the successful closing of the $44,185,000 unrated, fixed-rate Series 2015 Bond issue for Sunny Vista Living Center.

Sunny Vista Living Center, a Colorado not-for-profit corporation (Sunny Vista Living Center or Sunny Vista, or SVLC), was founded in 1911 as a tuberculosis sanatorium. To meet the needs of its changing community in Colorado Springs, Colorado, Sunny Vista has grown to operate a multi-faceted skilled care and rehabilitation center (the Skilled Care Facility), as well as an independent living center for elderly and disabled low income residents (the Independent Living Facility). Today, SVLC offers a total of 110 skilled nursing beds and 50 one-bedroom independent living apartments that serve seniors and disabled adults with Section 8 subsidies through the U.S. Department of Housing and Urban Development (HUD).

The 2015 project included a plan to develop 38 assisted living units and 28 memory care units (32 beds) (the New Assisted Living Facility) located on an approximately 4.78 acre site with a street address of 2450 East Cache La Poudre Street, Colorado Springs, Colorado. The New Assisted Living Facility is planned to comprise approximately 55,500 square feet and include a multi-purpose lounge with fireplace and attached outdoor deck, life enrichment room, life skills lounge, family room with connected outdoor patio, private dining room, sun room, a bathtique, staffing offices and central outdoor patio and garden with walking path.

Parallel to the Series 2015 transaction, the Villa at Sunny Vista (the Villa) and SVLC merged at the time of closing, with Sunny Vista Living Center surviving the two entities. Before the merger, SVLC and the Villa, owner of the 50-unit HUD facility, maintained an affiliated relationship and interconnected operations. Today, the chief executive officer of SVLC is also the chief executive officer of the Villa; and certain employees of SVLC, under the supervision of the Villa’s chief executive officer, maintain the independent living facility plant.

As a result of the merger, the Villa and SVLC will present its facilities as a single, consolidated campus. The addition of the new Assisted Living units will allow SVLC to provide a continuing care retirement community on its campus. As a nursing facility provider, SVLC is currently subject to a provider fee. With the merger of SVLC and the Villa, which allows the two entities to operate as one entity under which all three levels of care are provided, SVLC will qualify for the provider fee exemption which frees up over $402,000 in its stabilized year of 2019.

The 2015 financing is comprised of $42,260,000 of Series 2015A Tax-Exempt Fixed Rate Bonds and $1,925,000 of Series 2015B Taxable Fixed Rate Bonds. Series 2015A Bonds include $2,370,000 Term Bond maturing in 2025, $3,850,000 Term Bond maturing in 2030, $5,060,000 Term Bond maturing in 2035, $15,810,000 Term Bond maturing in 2045 and $15,170,000 Term Bond maturing in 2050. Series 2015B Bonds include $1,290,000 Term Bond maturing in 2019 and $635,000 Term Bond maturing in 2021.

The Serial and Term Bonds are being issued to: a) refund the Series 2004A US Bank Loan; (b) refund the Series 2010 BBVA Compass Loan; (c) finance the construction and equipping of a new 70-bed facility, comprised of 38 Assisted Living units and 32 Memory Support beds; (d) fund a working capital fund for the benefit of the owners of the Series 2015 Bonds; (e) fund a debt service reserve fund for the payment of principal and interest on the Series 2015 Bonds; (f) finance a funded interest fund for the payment of interest on the Series 2015 Bonds; (g) finance the swap termination fee relating to the Series 2010 Bonds; and (h) finance certain costs incurred to issue the Series 2015 Bonds.

“Ziegler is pleased to have served our friends at Sunny Vista. To have the opportunity to be a part of Sunny Vista’s organizational growth and to share in its newly offered full continuum of care across generations is fulfilling. We look forward to the opening of the new Assisted Living Facility,” commented, Will Carney, Managing Director in Ziegler’s Senior Living Finance 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 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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