Ziegler Prices $130.3 Million Financing For Presbyterian Retirement Communities Northwest

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Ziegler, a specialty investment bank, is pleased to announce the successful pricing of the $130,290,000 Fitch rated 'BB+', fixed-rate Series 2016A&B Bond issue for Presbyterian Retirement Communities Northwest (PRCN).

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As a valued partner of PRCN, Ziegler did an outstanding job of helping us customize a strategic finance plan to help PRCN continue our mission to support communities and services that celebrate and enrich the lives of seniors," said Torsten Hirche.

Ziegler, a specialty investment bank, is pleased to announce the successful pricing of the $130,290,000 Fitch rated 'BB+', fixed-rate Series 2016A&B Bond issue for Presbyterian Retirement Communities Northwest (PRCN). The issue is scheduled to close on October 5, 2016. PRCN is a Washington nonprofit corporation that was established in 1956 to develop, own and operate senior living facilities. Today, PRCN owns or controls three communities, all located in Seattle, Washington.

Proceeds of Series 2016A Bonds will be used to; (i) refund all of the outstanding principal amount of the $98,930,000 Series 2007A Bonds; (ii) pay or reimburse PRCN for the costs of the remodeling, renovating and equipping of senior housing and related facilities of PRCN at Park Shore; (iii) fund a debt service reserve fund, and (iv) pay certain costs of issuance of the Bonds. Proceeds of the Series 2016B (Taxable) Bonds will be used to; (i) repay, or reimburse Fred Lind Manor for the repayment of the outstanding principal balance of a taxable HUD loan incurred by Fred Lind Manor; (ii) pay or reimburse Fred Lind Manor for the costs of the remodeling, renovation and equipping of senior housing and related facilities of Fred Lind Manor; (iii) reimburse PRCN for the costs of acquiring three condominium units located proximate to Park Shore to be used as senior housing facilities; (iv) fund a debt service reserve fund for the benefit of the Bonds; and (v) pay certain costs of issuance of the Bonds.

The Series 2016 Bonds, totaling $130,290,000 in aggregate, are comprised entirely of BB+ (Fitch) rated fixed-rate bonds. The arbitrage yield on the issue (including taxable debt) was 3.455%, with an average yield to maturity of 4.160%.

“As a valued partner of PRCN, Ziegler did an outstanding job of helping us customize a strategic finance plan to help PRCN continue our mission to support communities and services that celebrate and enrich the lives of seniors. This financing structure places PRCN in a strong position, solidifying us as an organization to continue to provide exceptional senior living communities and services for our residents as we continue our vision to transform the perception of age. We could not be more pleased with the outcome,” said Torsten Hirche, President and CEO of PRCN.

“This financing cements, reinforces and bolsters PRCN’s core operations. Bringing PRCN’s three existing communities together into one Obligated Group provides a strong capital foundation from which this growing system will continue to build. PRCN has made significant operational strides in a rather short period of time. This strong upward trajectory combined with management’s strategic focus and its well-positioned communities in the booming Seattle Metro Area made PRCN’s financing an overwhelming success. PRCN was able to not only realize significant savings on the Skyline refinancing, but also reinvest over $30 million in its Park Shore and Fred Lind Manor campuses while simultaneously reducing its annual debt burden. In the end, Ziegler was able to leverage PRCN’s improving credit profile, market position and new BB+ credit rating with great effect, securing orders from over 20 institutional bond funds to participate in the issue – driving PRCN’s bond yield below 3.50% fixed for 35 years,” commented, Sarkis Garabedian, Senior Vice President 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.
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Mary Therese Pembroke
Ziegler
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