We mentioned in June that Ziegler had successfully priced about $199.4 million in Series 2020A-D fixed-rate bonds for Acts Retirement-Life Communities, and now the specialty investment bank and closed the transaction on behalf of the not-for-profit provider. Secured on 20 senior living communities in seven states, including eight locations in Pennsylvania, four in Florida, three in Delaware, two in North Carolina and one each in Georgia and Alabama, the bond issue comprised $115.1 million of tax-exempt bonds issued through and $84.3 million of taxable bonds. That makes this the largest senior living bond financing to-date in 2020.
The Public Finance Authority (Wisconsin), Palm Beach County Health Facilities Authority (Florida) and the Montgomery County Industrial Development Authority (Pennsylvania) issued the tax-exempt debt, which were structured as term bonds with a seven-year call at 103% on November 15, 2027. While the Montgomery County Industrial Development Authority (Pennsylvania) issued the taxable debt, which were structured as serial bonds and mature from 2021 to 2029.
A total of 37 different institutional investors placed orders on the tax-exempt bonds, resulting in an oversubscription of more than 13 times in aggregate on the longest bonds. Ziegler was able to use that significant investor demand to lower yields by 15 basis points on the long end of the curve, resulting in arbitrage yield of 3.11% and the yield-to-maturity of 3.74%. Proceeds will go towards financing or refinancing the costs of the acquisition, construction, equipping and improving of existing and additional facilities in the Obligated Group in North Carolina, Florida and Pennsylvania. The bond series will also refinance all or a portion of a revolving credit line issued by Bank of America, a credit ling issued by Truist Bank and of the Series 2012 bonds.
