Cain Brothers, a division of KeyBanc Capital Markets, has announced the closing of a $24.6 million Massachusetts Development Finance Agency Revenue Bond on behalf of D’Youville Senior Care in Lowell, Massachusetts, and its sponsor, The Carmelite System. Proceeds from the bonds were used to refinance two existing bank loans, fund capital improvements on the D’Youville’s campus and pay costs of issuance.
The refinancing addressed future interest rate risk by avoiding future expensive call premiums on the prior loans and providing near-term cash flow relief to D’Youville. In addition, Cain Brothers served as swap advisor to the sponsor on a long-dated, fixed-pay interest rate swap with a 10-year cancellation option to mirror the put feature on the bonds. The variable rate bonds are priced off of the index of 1-month SOFR. Cain Brothers also assisted in the creation of a Master Trust Indenture to standardize the lender’s security package and streamline future debt obligations. Cain Brothers acted as loan arranger and swap structuring agent in this transaction.
