Ziegler announced the closing of BHI Senior Living’s $32.0 million Series 2024AB bank loans. BHI is a faith-based not-for-profit organization that owns and operates 10 CCRCs across Indiana, Ohio and Michigan. The Series 2024AB bonds marks BHI’s eighth financing with Ziegler since 2000.
BHI will finance two phases of new construction at Hoosier Village in Zionsville, Indiana. Hoosier intends to construct 20 independent living townhomes with 3,200 square feet each in two phases beginning spring 2024 and another in spring 2025 for a total of 40 units. BHI currently has a waitlist with over 400 households seeking an independent living unit in the community.
Ziegler conducted a full bank search process and received multiple attractive proposals. The plan of finance was customized to leverage proceeds from the initial entrance fee pool. BHI elected to make use of the Phase I initial entrance fee pool to fund the majority of the Phase II project costs in 2025, rather than to utilize debt financing for the entire project amount.
The Series 2024A bonds consist of a $19.0 million direct placement which represents the “Permanent Debt” associated with Hoosier and it will have a seven-year commitment period. The Series 2024B bonds will consist of a variable rate drawdown loan of up to $13.0 million. This loan is considered to be “Temporary Debt” as it will be used to fund a portion of Phase II’s construction in 2025. Initial entrance fees received in Phase II will be used to pay down the Temporary Debt loan in full.
