Senior Housing Finance Activity: Ziegler, Kindred

Ziegler Closes $34.49 Million Bond Issue on Behalf of UMRH

Chicago-based speciality investment bank Ziegler announced the successful closing of the $34,485,000, tax-exempt, fixed-rate Series 2016A Bond issue on behalf of The United Methodist Retirement Homes (UMRH).

UMRH, a Life Care Services partner since 2000, is a multi-site operator of three continuing care retirement communities (CCRCs) in North Carolina: Cypress Glen in Greenville; Croasdaile Village in Durham; and Wesley Pines in Lumberton.

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All together, the three campuses have 932 total units consisting of 108 assisted living units, 622 independent living units and 202 skilled nursing units. 

Proceeds from the Series 2016A Bonds have be utilized, together with other available funds, to currently refund all of UMRH’s outstanding Series 2005A and Series 2005C Fixed Rate Bonds and pay certain expenses and fees incurred in connection with the sale and issuance of the Series 2016A Bonds. The Series 2016A Bonds were issued through the North Carolina Medical Care Commission and are ‘BBB’ rated from Fitch. The aggregate yield to maturity on the Series 2016A Bonds is 3.47%, which produced net present value savings to UMRH of $8,914,521 (equal to 22.47% of the principal amount of the refunded bonds). Davenport & Company, LLC acted as a 15% co-manager on the transaction.

NorthMarq Arranges $5 Million Refinancing for Seniors Housing Property in New York

NorthMarq Capital arranged the $5 million refinancing of Lohman Village, a 31-unit seniors housing community in Mount Vernon, New York. The loan features a 5-year term and 30-year amortization schedule.

Lohman Village is part of a large seniors housing campus in Mount Vernon called Wartburg that offers the full continuum of senior living options.

NorthMarq’s Robert Ranieri arranged the financing via NorthMarq’s relationship with an undisclosed regional bank.

Kindred Healthcare Completes Syndication of Incremental Term Loan and Secures Consent for Amendments to Credit Facilities

Kindred Healthcare, Inc. (NYSE:KND) announced it has completed syndication and pricing of an incremental $200 million term loan, the proceeds of which will be utilized to repay outstanding borrowings under the company’s current $900 million senior secured asset-based revolving credit facility. This borrowing will be fungible with, and will have the same terms as, the outstanding $1.18 billion of term loans under Kindred’s existing senior secured term loan credit facility. The incremental term loan will be issued at 99.05% of par, the company said in a press release.

In connection with the incremental term loan, Kindred received consent from the required lenders under the ABL facility and the term loan facility to change various provisions of those credit facilities, including to enable a wider range of joint venture activity, boost the company’s financial flexibility and make additional changes to better align the terms of these borrowings with Kindred’s strategic plan.

Kindred has secured J.P. Morgan Securities LLC to act as sole book runner and sole lead arranger for the incremental term loan. JPMorgan Chase Bank, N.A. is the collateral agent and administrative agent for the term loan facility, under which the incremental term loan will be borrowed.

These transactions are anticipated to close on or about June 15, 2016, subject to usual closing conditions.

Cambridge Arranges $13.6 Million HUD Loan To Refinance Illinois Assisted Living Community

Chicago-based Cambridge Realty Capital Companies provided a $13,579,400 HUD-Insured loan to refinance Alden Gardens of Waterford, an assisted living community in Aurora, Illinois, with 121 beds.

A fully-amortizing, 35-year term loan was issued to the owner, an Illinois limited liability company, according to Cambridge Chairman Jeffrey A. Davis. Cambridge Realty Capital Ltd. of Illinois, the Cambridge business that specializes in underwriting FHA-insured HUD loans, underwrote the transaction.

KeyBank Provides $17.7 Million Loan for Affordable Seniors Housing Property in Cleveland

KeyBank provided a $17.7 million loan for a 60-unit affordable housing seniors facility in Cleveland called Hough Heritage.

The funding consists of an $8 million construction loan and a $9.7 million Low-Income Housing Tax Credit investment from Key Community Development Corp.

The garden-style, three-story community will target seniors 55 and older with incomes that are 50% to 60% of the region’s median household income. Hough Heritage will have 10 two-bedroom and 50 one-bedroom units.

KeyBank’s Kyle Kolesar and Ryan Olman arranged the financing.

Written by Mary Kate Nelson

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