Ziegler has closed a series of bonds for Otterbein SeniorLife to acquire Kendal at Granville, a CCRC located in Granville, Ohio. Now renamed Otterbein Granville, the not-for-profit owner/operator will use proceeds from Series 2021B bonds to acquire the community and subsequently use the proceeds from the acquisition to refund the community’s Series 2015 bonds, acquire certain leased property on the campus and pay the cost of issuance.
The bonds consist of $24.5 million of tax-exempt Series 2021B bonds and $20.5 million of tax-exempt forward delivery Series 2023 bonds scheduled to close in April 2023. Proceeds of the Series 2023 bonds will be used to refund Otterbein’s outstanding Series 2013A bonds. The refunding of these bonds resulted in more than $3.5 million of net present value savings at the time of the Series 2023 bonds’ pricing.
Both sets of bonds were rated “A” by S&P, and carry a blended yield to call of 2.22% and have a blended weighted average yield to maturity of 2.58%. The Series 2021B bonds mature in 2046 and the Series 2023 bonds mature in 2039 – however, the Series 2021B bonds can optionally be redeemed in 2028. These were the second and third financings completed by Ziegler on Otterbein’s behalf and all three were executed within four months of each other. Ziegler recently closed an $8.5 million financing in August for the refinancing of debt at Otterbein Sunset House and Otterbein Sunset Village.
