Ziegler has announced a couple of bond financings for senior care clients. First, the firm arranged $58.4 million in bonds for Capital Manor, a not-for-profit CCRC in Salem, Oregon. Operated by Life Care Services since 2010, Capital Manor features 302 independent living units and 83 assisted living beds with an additional 34 memory care beds. Its new financing will refund bonds from 2012 and fund a renovation project that will include a new façade and refreshed common areas.
The bonds were issued through the Hospital Facility Authority of the City of Salem, Oregon with a yield of 3.030% and a yield to maturity of 3.415% and are callable in 7 years at 103, declining to par in year 10 (2032).
Then, the Ziegler team secured $23.55 million of bonds for The Redwoods, a not-for-profit CCRC in Mill Valley, California. Featuring 148 unlicensed independent living units, 130 licensed assisted living units and 58 licensed skilled nursing beds, the property serves moderate to low-income seniors in Marin County. Its outstanding Series 2013 bonds will be refinanced with the transaction, which also included an equity contribution of $5.0 million. Proceeds of the bonds and the equity contribution will also fund a bond reserve account, pay an insurance premium to the Cal-Mortgage Loan Insurance Program and pay certain costs of issuance.
While federally taxable, the bonds were issued through the California Municipal Finance Authority to allow for exemption from State of California income tax. The bonds amortize over a 15-year period, which is 8 years shorter than the maturity on the existing 2013 Bonds, and carry a bond yield of 2.937%. The bonds were also issued with a 10-year par call.
