Ziegler Closes $64.42 Million Baptist Life Communities Financing

Share Article

Ziegler, a specialty investment bank, is pleased to announce the successful closing of the $64,420,000 non-rated, tax-exempt Series 2016A&B financing for Baptist Life Communities, a new client to Ziegler.

News Image
"When BLC determined to build a new campus, we knew we needed the A Team. Ziegler was the first choice," said Dr. Robert Long, President and Chief Executive Officer for Baptist Life Communities.

Ziegler, a specialty investment bank, is pleased to announce the successful closing of the $64,420,000 non-rated, tax-exempt Series 2016A&B financing for Baptist Life Communities, a new client to Ziegler. Baptist Convalescent Center, Inc. d/b/a Baptist Life Communities (the Corporation or BLC) was incorporated on March 4, 1952 as a Kentucky not-for-profit corporation for the purpose of providing healthcare, housing and services to the elderly.

The Corporation currently owns and operates three campuses: Baptist Village, Erlanger, KY (80 IL units and 100 SNF beds); Baptist Convalescent Center of Newport, Newport, KY (30 Personal Care units and 167 SNF beds); and Griesser Farm, Burlington, KY (12 IL units).

Baptist Life Communities plans to replace the Baptist Convalescent Center (BCC) with a new community to be known as The Seasons at Alexandria in Alexandria, Kentucky (the Project). The Corporation plans to construct the 10-acre Alexandria campus at a new location approximately eight miles south of BCC in Campbell County.

Phase I is a planned community drawing architectural inspiration from an Italian Tuscan village. It will incorporate state-of-the-art operational features to deliver resident-centered care in neighborhood style areas. CON licenses for the 117 skilled nursing beds will be provided by transferring bed licenses from Baptist Convalescent Center. Following the opening of the Alexandria campus and the transfer of 117 beds, Baptist Convalescent Center will wind down and the property will be sold. CONs for 30 of the proposed 66 personal care beds have already been obtained by the Corporation. The Commonwealth of Kentucky has also approved the CON for the additional 36 personal care units. Phase II to the development of The Seasons at Alexandria is expected to include 60 independent living units as well as associated amenity spaces including additional dining and a Wellness Center. Management is not actively planning for this subsequent phase at this time.

The Series 2016A and Series 2016B Bonds were issued to (i) fund project costs and reimburse borrower of costs incurred related to the Alexandria Project, (ii) refinance $4,577,815 of existing debt outstanding, (iii) reimburse $515,000 of eligible capital expenditures incurred, (iv) fund $1,890,000 of cash requirements after opening (v) fund a Liquidity Support Fund of $1,000,000, (vi) fund a debt service reserve fund for the Series 2016 Bonds, (vii) fund funded interest on the new money portion of the Series 2016A bonds and for all of the Series 2016B bonds for 24 months, and (viii) pay the costs of issuance. The Corporation contributed $3,000,000 of equity related to the Project.

The Series 2016A Tax-Exempt Fixed Rate Bonds have a par amount of $61,380,000 comprised of $57,040,000 of new money and $4,340,000 of refunding. The Series 2016B Taxable Fixed Rate Bonds have a par amount of $3,040,000. The new money and refunding components are amortized together to form level debt service. The Series 2016A Bonds amortize over 35.5 years until 2051 with a double payment in 2051 partially funded with the release of the debt service reserve fund. The Series 2016B Bonds have a final maturity in 2023.

"When BLC determined to build a new campus, we knew we needed the A Team. Ziegler was the first choice," said Dr. Robert Long, President and Chief Executive Officer for Baptist Life Communities.

“The Seasons at Alexandria Project will allow Baptist Life to continue its 60+ year mission of caring for the elderly in northern Kentucky for many years to come,” commented, Tom Meyers, 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 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.

Share article on social media or email:

View article via:

Pdf Print

Contact Author

Mary Therese Pembroke
Ziegler
+1 (312) 596-1645
Email >
Visit website