Ziegler arranged a bond financing for a CCRC in San Rafael, California, to expand its campus and refinance its existing Series 2015A bonds. The borrower, Aldersly, opened Aldersly Garden Retirement Community in 1921 to serve the Danish-American senior population in California and Nevada, although it now welcomes anyone who meets its financial and other admission criteria. Life Care Services has managed the community since 2004.
Aldersley received $61.3 million in bonds, which are rated AA- by Standard & Poor’s based on credit enhancement provided by the Cal-Mortgage Loan Insurance Program. The bonds were issued through the California Municipal Finance Authority and amortize over a 30-year period. They were issued with a seven-year call at 103, declining to par in 2032.
Together with an equity contribution, Aldersly will use proceeds from the bonds to fund the construction of a 35-unit residential care facility consisting of larger, more marketable units, additional common areas and more parking, in addition to refinancing its existing Series 2015A bonds. The bonds will also fund approximately 26 months of capitalized interest, fund debt service reserve funds, pay a bond insurance premium and pay certain costs of issuance.
