As a follow up to the article on Christian Living Communities, Ziegler Capital Markets with co-manager Stifel Nicolaus & Company, Incorporated more details on the completion of the first non-rated fixed-rate continuing care retirement community (CCRC) financing since September 2008 for Christian Living Communities.
The strong demand from retail investors as well as solid institutional investor interest for the $30 million issue led to an 8.67% average fixed-rate yield, providing increasing confidence that the non-rated municipal bond markets may be thawing. Ziegler’s proprietary adjustable-rate EXTRASSMwere used to bring the average yield down even further, to 8.33%.
Christian Living Communities (CLC), a multi-site senior living system owns and operates three separate and distinct senior living campuses in and around the Denver area — the Johnson Creek, the Holly Creek and the Clermont Park campuses. The series 2009 tax-exempt revenue bonds issued through the Colorado Health Facilities Authority will fund Phase I of the Clermont Park Campus’ renovation project, consisting of the refurbishment of the University Hills independent living building to provide for 92 tailored living units, 17 assisted living units, 18 memory care units and construction of a new 64-bed skilled nursing facility and Town Center, with common and administrative areas.
Russ DenBraber, CEO of Christian Living Communities, commented, “It certainly was difficult to make the decision to access the capital markets at the current level of interest rates; however, CLC also saw large risks in delaying progress on a half finished project. The deal that the team put together for CLC allows us to keep the project going and actually take advantage of softening construction costs while also offering a refinancing option in five or six years through the call feature of the bonds. We are very pleased with the outcome.”