Acts Retirement-Life Communities (ACTS) has added another LPC (CCRC) to its stable of communities, bringing the total to 23 LPCs in nine states serving approximately 9,700 residents. The latest community to join the largest not-for-profit owner, operator and developer of LPCs is The Evergreens, located in New Jersey. Founded in 1919 by the Episcopal Diocese of New Jersey, the community now has 200 independent living units, 66 assisted living beds and a 34-bed skilled nursing center on 32 acres. The “affiliation” agreement, which means that The Evergreens has become a member of ACTS, was effective last February 5. The Evergreens’ board hired Ziegler in September 2016 to explore options for affiliating with another not-for-profit entity.
Wearing another hat, Ziegler completed a series of financings to allow to communities in Arizona and Washington to join into one obligated group. The financings included two tax-exempt, fixed-rate bond issues, a tax-exempt variable rate bank placement, and a taxable variable rate bank placement. No one ever said financing not-for-profits was simple. The total of $72.646 million of debt plus contributed equity went towards refinancing existing debt, fund debt service reserve funds, refinance $20 million of subordinate intercompany loans, finance the termination of an interest rate swap, and to pay for the cost of debt issuance. The two communities are part of the HumanGood National Obligated Group.
