Not many borrowers are refinancing their debt in today’s high-interest rate environment, but if you made the decision to forward price in January of 2022, you were in a great position. That is what Ziegler did for Presbyterian Retirement Communities, which is part of Westminster Communities of Florida, the largest operator of CCRCs in Florida and the 11th largest not-for-profit in the country.
Ziegler forward priced $142.6 million of tax-exempt bonds in January 2022 for delivery in May 2023. The bonds have a weighted average maturity of 17 years and an overall yield to maturity of 3.35%. It is doubtful they could achieve any rate close to that today. The total savings on the refinance will be $42 million, with annual debt service savings of approximately $1.74 million from 2024 through 2047.
The proceeds of the refinancing will be used to refund outstanding debt issued in 2016, interest expense due August 1, 2023 and closing costs of the new bond issuance.
Westminster and its affiliates have a total of 3,643 units, comprising 2,326 IL units, 536 AL units and 781 SN beds. Rob Gall of Ziegler handled the transaction.
