Ziegler announced the closing of Williamsburg Landing’s $76.91 million Series 2024A, 2024B and 2024C bonds (together, the Series 2024 Bonds).
Williamsburg Landing is a CCRC on 138.56 acres in Williamsburg, Virginia. The campus was originally built in 1982 and now comprises 317 independent living units, 73 assisted living units, 36 memory care units and 58 skilled nursing beds. It is accredited by the Commission on Accreditation of Rehabilitation Facilities (CARF), with its most reaccreditation in 2019.
In 2018, the campus acquired 15.3 acres of undeveloped land adjacent to the existing campus, on which they will develop an expansion known as Anchor Cove that will feature 27 terrace homes, 12 villa apartments and a new community center. The new community center will include a 300-seat theater, art studio spaces, multipurpose room, central gallery and small bar/take-out café. There are also plans to construct a new maintenance building, as well as site work and infrastructure that would allow for 38 additional independent living units in Anchor Cove in the future if the market and demographics warrant such expansion.
The Series 2024 bonds consist of two primary tranches of non-rated, public, fixed-rate bonds and one tranche of direct bank bonds issued through the Economic Development Authority of James City County, Virginia. Proceeds of the Series 2024 bonds will be used, together with other available funds to, (1) finance the costs of Anchor Cove, (2) fund a portion of interest during construction and fill-up, (3) fund debt service reserve funds, and (4) pay certain expenses incurred in connection with the issuance of the Series 2024 bonds. The individual components of the Series 2024 bonds are outlined further below:
- Series 2024A Long-Term Bonds ($36,560,000): represents a component of the long-term portion of the financing with a final maturity in 2058 using a wrapped debt service structure, resulting in a weighted average maturity of 32.6 years and a blended average yield of 6.48%.
- Series 2024B Long-Term Bank Bonds ($15,000,000): represents a component of the long-term portion of the financing with a final maturity in 2052 using a wrapped debt service structure, resulting in a weighted average maturity of 26.0 years and a rate of 5.65%.
- Series 2024C Tax Exempt Mandatory Paydown SecuritiesSM ($25,350,000): represents the short-term portion of the financing that will be repaid with initial entrance fees from the new Anchor Cove independent living units. Series 2024C Bonds were structured with three sub-series of bonds based upon expected redemption resulting in a weighted average maturity of 1.75 years with coupons ranging from 5.25% to 5.75% (blended average yield of 5.39%).
