Philly-Area CCRC Goes from Bank to Bond Debt

Facing rising short-term interest rates, a not-for-profit CCRC in the Philadelphia, Pennsylvania, market turned to Ziegler to refund its existing bank debt with a tax-exempt bond issue. The community is located on a 63-acre campus about 10 miles northwest of downtown Philadelphia in the town of Gladwyne, offering 151 independent living units, 69 IL villas, 33 personal care units, 16 memory care units and 49 private skilled nursing beds.

It had benefited from variable-rate debt over the last decade, investing in expansions and improvements over the years. However, when short-term rates were on the rise, but declining at the long end of the yield curve, they decided to refinance the bank debt with fixed-rate bond debt. Amy Castleberry led the Ziegler team in arranging $44.14 million in bonds issued through Pennsylvania’s Montgomery County Industrial Development Authority.

 

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