John Knox Village is a large not-for-profit single-site provider of senior living services headquartered in Lee’s Summit, Missouri. JKV owns/operates a life plan community which, as of December 31, 2023, consisted of 948 marketable independent living units ranging from single-family homes to apartments, assisted living communities consisting of 106 apartments and 76 memory care units, and a skilled nursing center operating 122 beds.
Ziegler announced the closing of John Knox Village obligated group’s $42.3 million Series 2024 tax-exempt bonds. The $30.83 million of Series 2024A fixed rate bonds along with the $5.53 million Series 2024B-1 (TEMPS SM-85) and $7.5 million Series 2024B-2 (TEMPS SM-50) were issued through The Industrial Development Authority of the City of Lee’s Summit, Missouri (together the “Series 2024 bonds”).
JKV will use the proceeds of the Series 2024 bonds to finance the project costs of replacing an existing 35-unit building with a new 52-unit building to be called Courtyard E. Courtyard E will be similar in architectural style to other buildings constructed over the past few years and it serves to continue JKV’s master plan for enriching resident amenities, beautifying the campus and increasing its available entrance fee ILUs at a variety of price points. JKV made use of Ziegler’s trademarked tax-exempt mandatory paydown securities (“TEMPS SM”), which are fixed rate bonds designed to be paid down gradually with initial entrance fees on new independent living units during the project’s initial fill-up period. The TEMPS SM are an attractive capital structure for projects such as JKV’s due to flexible call provisions (prepayable in one year with no penalty) and interest rates that reflect the expected fill-up within a few years. The TEMPS SM represented 55% of the par amount of “new money” bonds, which resulted in JKV only adding $11.23 million of long-term debt for the project. In addition to the Courtyard E, JKV will use the Series 2024 bonds to refund its Series 2014 bonds, outstanding in the par amount of $21 million, to capture debt service savings.
Will Carney and Jennifer Lavelle handled the transaction. JKV is a long-term Ziegler client (since 1995) and the Series 2024 bond issue represents its ninth consecutive financing for JKV.
