Ziegler announced the closing of New Jersey-based FellowshipLIFE’s Series 2024 bonds and taxable term loan in an aggregate par amount of $42.5 million for the Senior Living Finance Practice. FellowshipLIFE, a not-for-profit provider of seniors housing, has an obligated group (subject of this financing) that currently consists of only Fellowship Village and is rated “BBB-” by Fitch Ratings. In connection with this financing, the obligated group will purchase a CCRC in Freehold, New Jersey, and bring it into the obligated group, which will result in no change to the current rating. Before the acquisition, the obligated group only included the Fellowship Village CCRC in Basking Ridge, New Jersey, which features 256 IL units, 55 AL beds, 37 MC beds, and 67 skilled nursing beds on 72 acres.
Built in 1990, Applewood is a CCRC that was formerly owned by CentraState Healthcare System. It sits on approximately 44 acres and offers 300 independent living, 37 assisted living, 11 memory care units and 60 skilled nursing beds.
Ziegler facilitated a bank search which resulted in multiple proposals for the acquisition of Applewood. The acquisition was completed utilizing a mix of tax-exempt and taxable debt. Together, the Series 2024 bonds and taxable term loan were structured to wrap around Fellowship Village’s Series 2019 public fixed rate bonds to result in level aggregate annual debt service.
