Ziegler successfully closed two sets of bonds for The Lutheran Homes of South Carolina (LHSC), a not-for-profit with five CCRCs, three hospice offices and four non-medical in-home services agencies throughout the Palmetto State. The $27.5 million of Series 2022A and 2022B bonds are being directly purchased by First Horizon Bank (LHSC’s existing banking partner) with a 12-year commitment, covenants matching the master trust indenture and pricing of 82.5% of term SOFR plus 1.32%.
The Series 2022A refunding bond totaled $11.55 million and refunded the Series 2017 direct placement bank bond, extending the final maturity of the refunded debt to match the 12-year commitment term (with a six-year extension). That results in nearly $1 million of annual cash flow savings over the next six years. Plus, LHSC entered a fixed payor swap for the entire principal balance through maturity at an all-in rate of 3.663%.
Totaling $15.95 million, the Series 2022B new money bond finances the construction of 18 new independent living units at Heritage at Lowman, 18 new IL units and a 7,000-square-foot dining and activity center at Rose Crest, and interest expense during construction. It acts as a draw-down loan, and LHSC entered into a 12-month forward starting swap that accretes to the entire principal balance at project conclusion and through final maturity at an all-in rate of 3.738%.
