Ziegler announced it has priced Series 2022 bonds on behalf of Ohio Living, a not-for-profit owner/operator of twelve seniors housing communities in Ohio. Nine of the properties are full-service life plan communities offering independent and assisted living units, along with skilled nursing beds. Proceeds from the bonds will be used to refund Series 2013A bonds and pay costs of issuance associated with the financing.
The bonds will realize net present value savings on the Series 2013A refunding in excess of $15 million, or greater than 30%. The Series 2022 Bonds consists of tax-exempt fixed interest rate serial bonds and a final term bond. They have a 19-year maturity that “wraps” around Ohio Living’s existing debt service structure and produces annual debt service savings in the range of $1.4 million.
The absence of a debt service reserve fund as well as the aggressive pricing of the bonds resulted in only five institutional investors’ participation in the offering. The yield to maturity is 3.22% and the bonds are BBB rated by Fitch. The bonds received call provisions of 7 years at 103% declining to par in 10 years. Ziegler worked with Ohio Living in 2020 as the lead underwriter on Series 2020B fixed interest rate bonds, which were used to finance Ohio Living’s Heritage Pointe project.
