Ziegler successfully closed a bond financing for Shenandoah Valley Westminster-Canterbury, a Virginia not-for-profit organization that owns and operates a CCRC in Winchester. Set on 87 acres, the 40-year-old campus provides housing, health care, and other services to nearly 400 residents across 217 independent living units (164 apartments and 53 cottages), 48 assisted living units, 12 memory care units and 51 skilled nursing beds. The organization is currently completing an independent living expansion project, the first phase of which was financed by Ziegler in 2022 and will include 48 new IL villa apartments. The second phase of the project that is being financed with the new Series 2023 bonds includes an additional 49 IL villa apartments for which SVWC issued two tranches of drawdown bank loans that were purchased by Atlantic Union Bank and Pinnacle Financial Partners under a participation agreement.
The Series 2023A long-term bond totaling $27.5 million was structured with a 10-year bank commitment period and an accreting swap that mitigates interest rate risk through the bank commitment period. Meanwhile, the Series 2023B intermediate-term bond totaling $25.0 million has a 30-month maturity to be repaid with initial entrance fees from the project at pricing. Altogether, that is more than $52 million in financing for the expansion, which comes out to more than $1.07 million per unit. The $71.0 million in bonds arranged to fund the first phase of the project came out to more than $1.4 million per unit.
In addition to the 2022 and 2023 revenue bond financings, SVWC partnered with Ziegler on several debt refinancings since 2014, significantly reducing SVWC’s cost of capital.
