CHICAGO, Oct. 8, 2020 /PRNewswire-PRWeb/ -- Ziegler, a specialty investment bank, is pleased to announce the successful closing of the Heritage Community of Kalamazoo's Series 2020AB Bonds.
The Heritage Community of Kalamazoo ("HCK") is a Michigan not-for-profit corporation that was founded in 1945 that today offers housing and healthcare services to the senior citizens of Kalamazoo County and surrounding areas. HCK provides independent living, assisted living, memory care, and skilled nursing services to over 300 residents at its Portage Street campus, located just south of downtown Kalamazoo. HCK also serves the Kalamazoo, Allegan and Kent counties with private duty homecare. The HCK Obligated Group consists of a total of 225 units: 86 independent living units, 49 assisted living / memory support units, and 90 skilled nursing beds.
HCK will use proceeds of the Series 2020AB Bonds to construct 60 independent living units to be located in a new residential structure on the western portion of its campus to be known as Revel Creek. The new one and two-bedroom units will be arranged in a three and four-story building. The building will also feature a new dining venue with commercial kitchen, a bar area, den, living room, library, outdoor terraces with seating spaces and a fitness room. There will be 67 parking spaces and resident storage for each unit provided in an underground parking garage.
The Series 2020AB Bonds consist of three tranches of tax-exempt fixed interest rate debt. The Series 2020A Bonds ($32,085,000) with a final maturity in 2055 will fund the permanent debt component of this issue. The Series 2020B-1 TEMPSSM–85 Bonds ($6,585,000) and the Series 2020B-2 Bonds TEMPSSM–60 Bonds ($9,180,000) will be repaid with a portion of the first generation entrance fees of the Revel Creek Project. The Series 2020AB Bonds are Fitch "BB" rated and have a yield to maturity of 4.56% on the entire issue and 4.68% on the Series 2020A permanent debt Bonds.
Proceeds of the Series 2020AB Bonds, along with other available funds, will be used to: (i) finance all eligible costs related to the Revel Creek Project; (ii) fund 24 months of interest; (iii) fund various debt service reserve funds; and (iv) pay for a portion costs of issuance related to the financing.
Rachel Olmsted, Chief Financial Officer of the Heritage Community of Kalamazoo, stated, "Heritage is excited to embark upon the construction of Revel Creek as we mark the 75th year of serving seniors in Kalamazoo. We are grateful to our partners at Ziegler for helping us navigate the uncertainty brought about by the pandemic, and ultimately achieving a favorable outcome for the project which will strengthen Heritage for years to come."
Tom Meyers, Senior Managing Director, Ziegler Senior Living Finance stated, "Ziegler is excited to take part in the next stage of the Heritage Community of Kalamazoo's longstanding tradition of serving seniors in the Kalamazoo area. Ziegler's relationship with the Heritage began in 1999 with the funding of the residential assisted living and memory care portions of its continuum of care. Revel Creek's independent living addition will expand the Heritage's product offering and it will add vitality to this mix for decades to come."
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, 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.
About Ziegler:
Ziegler is a privately held, national boutique investment bank, capital markets and proprietary investments firm. It has a unique focus on healthcare, senior living and education sectors, as well as general municipal and structured finance. Headquartered in Chicago with regional and branch offices throughout the U.S., Ziegler provides its clients with capital raising, strategic advisory services, fixed income sales, underwriting and trading as well as Ziegler Credit, Surveillance and Analytics. To learn more, visit http://www.ziegler.com.
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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SOURCE Ziegler
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