Senior Housing Finance: Love Funding, Ziegler, NCR, AdCare

Ziegler Closes $51.6 Million Financing for Pa. CCRC Group

Ziegler recently closed a $51,640,000 tax-exempt, fixed-rate Series 2012 Bond issue for Asbury Pennsylvania Obligated Group issued through the Cumberland County Municipal Authority. 

Asbury Pennsylvania Obligated Group consists of Bethany Village and Springhill, two CARF/CCAC accredited CCRCs located in Pennsylvania. Both communities are operating segments of Asbury Atlantic, a not-for-profit, tax-exempt non-stock corporation organized under the laws of Maryland.

Asbury Communities, Inc., a Maryland not-for-profit 501(c)(3) is the sole corporate member of Asbury Atlantic and is #15 on the LeadingAge Ziegler 100 listing of the top 100 multi-site providers across the nation. 

The proceeds of the Series 2012 Bonds will be used to refund certain tax-exempt bonds of the Authority previously issued on behalf of the corporation; fund a deposit to the Combined Debt Service Reserve Fund; and pay a portion of the costs of issuing the bonds. The refinancing allowed Asbury to refinance their existing bank debt and eliminate bank renewal risk all together from their capital structure for the PA obligated Group, says Ziegler. 

Love Funding Refinances $10.4 Million of Loans for 2 Michigan ALFs

Love Funding recently announced the refinancing of two loans totaling $10.4 million for assisted living properties in western Michigan.

Bruce Gerhart and Robert Smallwood out of Love Funding’s Cleveland office secured the loans through the Department of Housing and Urban Development’s Section 232/223(a)(7) LEAN loan program.

The two properties benefiting from the refinancing are Railside Assisted Living in Byron Center and Sheldon Meadows Living Center in Hudsonville. Reenders Inc. has principal ownership in both properties and was able to save more than $513,000 in annual debt service costs.

Oak Grove Capital Originates $3.9 Million Loan for Minn. Senior Residence

Oak Grove Capital recently originated a $3,869,000 loan through the Department of Housing and Urban Development’s Section 232/223(a)(7) program to refinance Cornelia House, a senior housing community in St. Paul, Minn. 

Ziegler Closes $50 Million Financing for Masonic Homes of Kentucky

Ziegler recently announced the closing of a $49.65 million tax-exempt, fixed-rate Series 2012 Bond issue for Masonic Homes of Kentucky, a not-for-profit corporation which owns and operates three senior living campuses in Louisville, Shelbyville, and Taylor Mill, Ky. The Louisville and Shelbyville campuses are in the obligated group and encompass 400 personal care, assisted living, and skilled nursing units. 

Ziegler served as the sole manager of the non-rated Series 2012 Bonds, with proceeds of the sale used to currently refund the outstanding Series 2009 Bonds, Series 2010 Bonds, as well as other corporate debt; fund small projects on the two campuses; fund a debt service reserve fund; and pay for certain costs of issuance. The refunding also allowed MHKY to create an Obligated Group with a select portion of its operations as well as to release over $15 million of cash and investments that were used as collateral for its prior bonds. 

NCR Gets $10.5 Million in HUD Service Coordination Grants

National Church Residences was able to get 46 social service coordination grants for a total of $10.5 million from the Department of Housing and Urban Development (HUD), the not-for-profit organization announced recently. 

Three of those grants are specifically for maintaining service coordinators in three of NCR’s affordable senior housing communities, while the remaining 43 grants were submitted to HUD by NCR on behalf of third-party owners, whose service coordination programs are assisted by the nonprofit.

“HUD’s support of our service coordination program will allow National Church Residences to substantially increase our level of service to scores of low-income senior housing residents across the country,” said Terry Allton, vice president of Home and Community Services. “Service coordination is a proven, effective method of fostering independence and allowing seniors to more successfully age-in-place in their own homes.”

AdCare Prices $10.4 Million Stock Offering

AdCare Health Systems, Inc. (NYSE MKT:ADK) has priced an underwritten public offering of its 10.875% Series A Cumulative Redeemable Preferred Stock at a public offering price of $23 per share. AdCare expects to get approximately $10.35 million in gross proceeds and intends to use the net proceeds for working capital and other general corporate purposes, including the repayment of certain indebtedness. 

The closing of the offering is scheduled for Nov. 14, 2012. MLV & Co. LLC is acting as sole book-running manager for the offering, with GVC Capital LLC, Ladenburg Thalmann & Co. Inc. and C.K. Cooper & Company as co-managers. 

MassDevelopment Issues $30 Million Bond to Ventas Subsidiary

MassDevelopment, Massachusetts’ finance and development agency, recently issued a $30 million bond on behalf of Ventas subsidiary Woodbriar Senior Living LLC.

Woodbriar will use the proceeds to build a 125-unit assisted living community in Falmouth, Mass. Plans for the development include donating nearly 15 aces of land to a local conservation group, reports Boston.com, in order to create the first handicap-accessible park and walking trail in Falmouth. Additionally, 25 units of the community will be designated for households earning no more than 50% of the area median income.

ASL Development Co. LLC, a subsidiary of Atria Senior Living Inc., will develop the project. 

Ziegler Closes $98.5 Million Financing for Lutheran Home

Ziegler recently closed a $98.5 million tax-exempt, fixed-rate Series 2012 Bond issue for the Lutheran Home and Services Obligated Group in Arlington Heights, Ill., to be issued through the Illinois Finance Authority. 

Proceeds of the Series 2012 Bonds will be used to fund a major repositioning of the Lutheran Home campus to modernize the community’s interior and exterior. The ultimate unit mix will be roughly the same as its current composition of 392 skilled nursing beds and 100 assisted living units, but many units and common areas will undergo substantial upgrades, including adding private baths to each unit.

Additionally, the majority of the mechanical, plumbing, and electrical systems will be replaced, and parking will be increased by about 35%. The campus will add a new “West Wing” with 78 private rooms with private baths.

Lutheran Homes plans to complete the project in phases so as to cause minimal disruption to occupancy and operations during construction. The financing’s primary goal is to improve the physical plant and amenities to ensure the longevity of the community.

About 72% of the proceeds will be used for this construction project, will the balance will be used to refund certain outstanding debts such as $23.34 million of outstanding Variable Rate Demand Bonds and a $2.5 million line of credit. Following the financing, Lutheran Home will only have fixed-rate debt.