Senior Housing Finance Activity: Ziegler, Walker & Dunlop, More

Walker & Dunlop Secures $381.8 Million Refinance for REIT SNF Portfolio

Walker & Dunlop recently secured a $381.8 million refinance for healthcare REIT Extendicare Health Services’s 51-property portfolio of skilled nursing facilities, reports Globe St. The deal was complex due to its structure as separately obtaining refinancing each property using the Department of Housing and Urban Development’s healthcare loan program, and notable as it’s one of the first REIT refinancings through HUD, according to Michael Vaughn, formerly of HUD’s Office of Healthcare Programs, who now heads up Walker & Dunlop’s FHA Healthcare Group. 

CMBS provided the original financing for the portfolio, and the transaction included coordinating th release of the collateral from the existing CMBS facility and finalizing the Master Lease and Accounts Receivable documentation, reports Globe St. 


The portfolio is located in Indiana, Ohio, Pennsylvania, Michigan, Minnesota, West Virginia, and Wisconsin. Walker & Dunlop is the holder of the mortgages, with HUD providing mortgage insurance. The loans are being securitized via Ginnie Mae. 

AdCare Announced Public Offering of Series A Preferred Stock

AdCare Health Systems, Inc. (NYSE MKT:ADK) announced on Nov. 1 the underwritten public offering of a new series of its preferred stock, to be designated as its 10.875% Series A Cumulative Redeemable Preferred Stock.


MLV & Co. LLC, GVC Capital LLC and Ladenburg Thalmann & Co. Inc. are acting as underwriters to offer and sell the Series A Preferred Stock on a “best efforts” basis. MLV will act as sole book-running manager for the offering, and GVC Capital and Ladenburg will act as co-managers.

AdCare plans to use the net proceeds from the offering for working capital and other general corporate purposes, which may include the repayment of certain indebtedness. 

S.C. CCRC Completes $45.4 Million Bond Financing

The Woodlands at Furman, an Upstate Senior Living continuing care retirement community in South Carolina, recently completed a $45.4 million tax-exempt bond financing using the S.C. Jobs-Economic Development Authority (JEDA) to restructure its original Series 2007 Bonds. 

The retirement community has 132 independent living units, 32 assisted living units, 16 memory care units, and 30 skilled nursing beds. 

“This kind of public-private partnership helps organizations like Upstate Senior Living continue to improve the quality of life at facilities like The Woodlands at Furman for people moving through these critical stages of their lives,” said Harry A. Huntley, CPA, Executive Director of JEDA in Columbia.

NHC Renews $75 Millon Credit Line with Bank of America

National HealthCare Corporation (NYSE MKT: NHC), a long-term healthcare and assisted living facility operator, announced recently the renewal of its one-year, $75 million line of credit with Bank of America.

“With the renewal of our credit arrangement with Bank of America, we continue to have access to ample financial resources to develop growth opportunities across all areas of senior care,” said Robert Adams, CEO, in a statement.

Ziegler Closes $49 Million Financing for Christian Living Communities

Ziegler recently closed a $49,195,000 non-rated, tax-exempt fixed-rate Series 2012 Bond issue for Christian Living Communities (CLC), a not-for-profit corporation that owns and operates three senior living campuses in the south Denver metropolitan area. Ziegler served as co-manager with Stifel Nicolaus on the bonds. Proceeds of the sale of the Series 2012 Bonds were used to refund the outstanding Series 2004, 2006B-1, and Series 2009 Bonds; fund a debt service reserve fund; and pay for certain costs of issuance.

The refunding allowed CLC to realize approximately 12% present value savings of the refunded bonds.

“The CLC underwriting combined strong retail and institutional distribution which led to record debt service savings for the client,” said Will Carney, managing director in Ziegler’s senior living practice. “This pricing enabled CLC to significantly reduce their average cost of capital from a 7.51% average rate on the refunded bonds to only 4.83% on the new refunding issue.”

Ziegler Closes $18 Million Financing for Oregon CCRC

Ziegler recently announced the closing of an $18.25 million fixed-rate, Series 2012 Bond issue for Terwilliger Plaza, Inc., an Oregon not-for-profit corporation located south of downtown Portland. 

The community offers 247 independent living apartments, 44 assisted living apartments, and 21 residential care beds under a “Type B” continuing care contract. The campus includes a 12-story apartment building with an attached four-story assisted living building, a multi-level parking garage, and a separate 10-story apartment building. Common areas include a public restaurant, grocery store, rooftop gardens and patio, view lounges, a library, craft, and hobby areas, a chapel, an auditorium, and other amenities typical to CCRCs.

Proceeds from the Series 2012 financing were used to refinance Terwilliger Plaza’s $20.9 million outstanding Series 1999 BOnds, establish a debt service reserve fund, and pay certain costs of issuance. Ziegler notes that this was strictly a refinancing transaction to generate cash flow savings as no new capital was issued.

The $17.4 million in Series 2006 Bonds remain outstanding. Fitch has assigned a ‘BBB’ rating to the Terwilliger Plaza bonds with a stable outlook.

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