Ziegler closed a huge financing package for HumanGood California Obligated Group to take out outstanding debt, advance refund other previous bond series and fund various campus improvements across the 14 CCRCs owned and operated by the Obligated Group in California. Altogether, the bank capital totaled $125 million.
There were $15.48 million in Series 2020A revenue and refunding bonds that refinanced an existing tax-exempt bank placement and came with a commitment period of 16 years, matching the previous placement. The Obligated Group received a variable rate based on 79% of one-month LIBOR plus a bank spread and also entered into an interest rate cap with a strike price of 2.4%.
The Series 2020B bonds are taxable and totaled $64.765 million, which advance refunded another previous bond series and a portion of one using a Cinderella structure. The taxable interest rate will convert to tax-exempt 90 days prior to the call date, and the bonds have a commitment period of 15 years. The variable rate will be based on one-month LIBOR plus a bank spread, with the Obligated Group entering into an approximately two-year interest rate cap with a strike price of 1.6% effective during the taxable period and a forward-starting, 13-year fixed-rate swap at 0.768% effective during the tax-exempt period.
Ziegler arranged a taxable loan too, which totaled $33.755 million and came with a commitment period of 15 years, structured as a draw-down loan for the first two years. The variable rate is also based on one-month LIBOR plus a bank spread. Once again, the Obligated Group entered into a forward-starting, 13-year fixed-rate swap contract at 0.996% starting after the two-year draw period and going through the remaining commitment period. The loan will fund the various campus improvements across the portfolio.
Finally, Ziegler secured an $11 million taxable revolving line of credit (also with a variable, one-month LIBOR interest rate plus a bank spread on the amount drawn) that will be used for future capital projects. All of the capital was placed with Washington Federal Bank.
