Senior Housing Finance Activity: Cain Brothers, Ziegler, Beech Street Capital

| December 27, 2012

Cain Brothers Arranges $11.2 Million Loan for Ore. Senior Care Facility

Cain Brothers Funding arranged an $11,212,000 taxable loan insured under the FHA Section 232-223(a)7 LEAN program for Dallas Health Care Center, a 161-unit skilled nursing, assisted living, and memory care facility located in Dallas, Oregon. The proceeds of the new loan were used to refinance an existing FHA-insured loan.

The new FHA-insured loan has an interest rate of 2.50% for 32 years. This new loan will generate annual debt service savings in excess of $340,000.

Beech Street Capital Closes $9.6 Million Refinance for Ill. SNF

Beech Street Capital, LLC recently closed a $9.6 million loan using the HUD Section 232/223(a)(7) program to refinance Lake Park Center, a 210-bed skilled nursing facility in Waukegan, Ill. 

The transaction was originated by Joshua Rosen, executive vice president of Beech Street Capital working out of the company’s Chicago office.

Beech Street was able to negotiate a deal to cut in half the borrower’s original interest rate of more than 5%, and was also able to make the case with HUD that the borrower’s professional liability coverage was sufficient given its excellent claims history, even though it doesn’t comply with current guidelines. 

Ziegler Closes $78.6 Million Epworth Villa Financing

Ziegler recently closed a $78,635,000 fixed-rate, Series 2012 Bond issue for Epworth Villa, a continuing care community located in Oklahoma City, Okla. on an approximately 40-acre campus. Epworth Villa is related to the Oklahoma Annual Conference of The United Methodist Church and currently has 227 independent living units, 87 skilled nursing beds, 26 traditional memory support beds, and 24 memory support assisted living beds.

The Series 2012 Bonds are being issued to refund a portion of prior debt; finance the expansion and repositioning project; fund various debt service reserve funds; fund a portion of interest on the new money-related bonds; and pay certain costs of issuance. The Series 2012 Bonds are all unrated fixed-rate bonds, and include two series of TEMPSSM to be redeemed with entrance fees, and longer-term fixed-rate bonds.

GE Capital Serves as Administrative Agent for $65 Million Senior Credit Facility

GE Capital, Healthcare Financial Services announced today that it is serving as administrative agent on a $65 million senior secured credit facility for National Hospice Holdings, LLC doing business as Life Choice Hospice. The financing supports Life Choice’s acquisition of SolAmor Hospice Corporation from Genesis HealthCare, LLC. GE Capital Markets served as sole lead arranger and bookrunner on the facility.

Life Choice Hospice is a privately owned and operated hospice organization headquartered in Dresher, Pa. The company offers comprehensive services including case management, pain management, palliative care, personal care, counseling, spiritual care and emotional support. With the acquisition of SolAmor Hospice, the organization will provide hospice services from 29 offices across 12 states.

Cain Brothers Arranges $120 Million Refi and Debt Restructure for CCRC

Cain Brothers recently assisted Mirabella Seattle in restructuring and refinancing its 2006 bonds. The investment banking firm served as lead underwriter on Mirabella’s $89.24 million Series 2012 Bonds and also assisted with respect to the restructuring of $30.75 million of subordinated bonds with banks that provided letter of credit support for the 2006 bonds. The 2012 bonds are unrated.

Ziegler Closes $127.5 Million ESC Financing

Ziegler recently announced the closing of the $127,480,000 fixed-rate, Series 2012 Bond issue for Episcopal Senior Communities (ESC), a California not-for-profit public benefit corporation providing housing, related facilities, and services for elderly.

The Series 2012 Bonds are being issued to (i) refund prior Series 2000 VRDBs; finance the expansion and renovation of Spring Lake Village; fund various debt service reserve funds; fund a portion of interest on the new money-related bonds; and pay certain costs of issuance.

The Series 2012 Bonds are all rated fixed-rate bonds, and include three series of TEMPS to be redeemed with entrance fees, and two series of longer-term fixed-rate bonds.

Ziegler Closes $24 Million Financing for New Mexico Retirement Community

Ziegler recently closed a $24,030,000 fixed-rate, tax-exempt, Series 2012 Bond issue for El Castillo Retirement Residences in Santa Fe, New Mexico.

El Castillo Retirement Residences, Inc., a nonprofit organization organized in 1969, owns and manages El Castillo Retirement Residences, the first continuing care retirement community in New Mexico that remains the only Santa Fe retirement residence offering life care to its residents under a “continuing care” concept. 

Proceeds of the Series 2012 Bonds, together with other sources of funds, will be used to refund, on a current basis, the outstanding Series 1998 Bonds in the amount of $12,230,000 and to fund approximately $11,700,000 in improvements to the health center, says Ziegler. The improvements will include expanding and renovating the health center by adding new assisted living, memory care, and skilled nursing units and beds. In addition, El Castillo Retirement Residences, Inc. plans to renovate and convert some existing semi-private nursing beds into private rooms.

Greystone Communities has been engaged to provide development consulting services and to assist with implementing the development plans.


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Category: CCRCs, Development, Finance, Senior Housing, Senior Living

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