This financing enabled Acts to take advantage of historically low interest rates to refinance and rework existing debt, as well as borrow new money for a variety of capital projects on several campuses...
Chicago, IL (PRWEB) December 01, 2016
Ziegler, a specialty investment bank, is pleased to announce the successful closing of the $232,215,000 Series 2016 financing ($209,940,000 Series 2016 Tax-Exempt Bonds and $22,275,000 2016 Taxable Corporate Notes) for Acts Retirement-Life Communities, Inc. Obligated Group (Acts). The Series 2016 Tax-Exempt Bonds were issued through the Montgomery County Industrial Development Authority (Pennsylvania Bonds), Palm Beach County Health Facilities Authority (Florida Bonds), and Gainesville and Hall County Development Authority (Georgia Bonds). The total transaction size is among the largest issues in the tax-exempt senior living marketplace.
Acts, a Pennsylvania not-for-profit corporation, was incorporated in 1971 originally under the name Open Door Estates, Inc. Acts was founded to own and operate continuing care retirement communities that have been designed and developed specifically for use by senior adults. These communities provide retirement living through a combination of housing and services including supportive services and health care services.
Acts originated from the concern of the members of a suburban Philadelphia church about the housing accommodations for the elderly. That concern resulted in the development of a small life care community in Upper Dublin Township, Montgomery County, Pennsylvania (now known as Fort Washington Estates). From that original concern, Acts has grown to now include seven additional communities in Pennsylvania, four communities in Florida, three communities in Delaware, two communities in North Carolina, one community in Georgia, and one community in Alabama.
Acts is the nation’s third largest not-for-profit provider of senior living services based upon the 2015 LeadingAge Ziegler 150 (LZ 150) ranking and the largest headquartered in Pennsylvania. Acts currently operates 21 communities in eight states with a total of 7,993 units comprised of 5,243 Independent Living Units (ILUs), 849 Assisted Living Units (ALUs), and 1,356 Skilled Nursing Facilities (SNFs).
Acts issued its Series 2016 Tax-Exempt Bonds to (i) currently refund all or a portion of the outstanding Series 2006A&B Pennsylvania Bonds and Series 2006A&B Florida Bonds; (ii) advance refund all or a portion of the outstanding Series 2009A-1 Pennsylvania Bonds, Series 2010 Florida Bonds, and Series 2009A-2 Georgia Bonds; (iii) pay and/or reimburse Acts for certain capital projects; and (iv) finance some or all of the cost of issuing the Series 2016 Bonds. The Series 2016 Tax-Exempt Bonds are rated “A-” (stable) by Fitch Ratings. The fixed-rate bonds are structured as serials and term bonds with a 10-year call at par on November 15, 2026. The 2016 Taxable Corporate Notes mature in 2019 and the Series 2016 Tax-Exempt Bonds mature in 2036. The final structure of the Series 2016 Tax-Exempt Bonds was priced on June 29, 2016 and is shown below.
The Series 2016 Tax-Exempt bonds closed concurrently with the 2016 Taxable Corporate Notes. The 2016 Taxable Corporate Notes were used to (i) currently refund all or a portion of the outstanding Series 2003A ACTS corporate obligation; (ii) advance refund all or a portion of the outstanding Series 2009A-2 Georgia Bonds; (iii) refund an existing bank line of credit; and (iv) finance some or all of the costs of issuing the Notes.
Acts has been a Ziegler client for over 20 years and has been in the investment grade category since 1996. The Bonds do not have a Debt Service Reserve Fund and took advantage of an extended time period from pricing to closing.
“This financing enabled Acts to take advantage of historically low interest rates to refinance and rework existing debt, as well as borrow new money for a variety of capital projects on several campuses. Not only was it a large issuance, but it was complicated, too, with several states, issuers and series involved. The Acts team worked quickly and nimbly during a rapidly changing market environment to achieve the optimal debt structure, which resulted in an ability to fund $87 million of project costs with a very modest increase in the organization’s maximum annual debt service. We are honored to work with the truly outstanding Acts organization,” commented, Amy Castleberry, 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 more information about Ziegler, please visit us at http://www.Ziegler.com.
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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