Ziegler announced that it advised on an acquisition loan and closed a bond financing. Ziegler was the capital structure advisor and hedge advisor in the placement of a $52.5 million acquisition loan on behalf of a regional owner/operator. The acquisition financing was used to acquire five independent living communities in Michigan. The portfolio surrounds the Metro-Detroit MSA and has a total of 631 units and 695 beds.
Christopher Utz advised and negotiated the transaction for the borrower and placed the loan with Oxford Finance. Ziegler’s Structured Products Practice placed an interest rate cap through a competitive bid process, ultimately executing the cap with Goldman Sachs.
Ziegler also closed HumanGood California Obligated Group’s $67.23 million Series 2025A bonds through the California Municipal Finance Authority. HumanGood owns and/or operates 23 CCRCs and 102 affordable housing communities in California, Washington, Arizona, Nevada, Idaho, Oregon, Pennsylvania, Massachusetts and Delaware. Ziegler’s long-standing relationship with the organization spans more than 20 years.
The California Obligated Group consists of HumanGood affiliates that own/operate CCRCs in California: HumanGood NorCal, HumanGood SoCal and HumanGood Fresno. They collectively own/operate 12 CCRCs with 2,004 independent living units, 454 assisted living units, 161 memory care units, and 626 skilled nursing beds.
The bonds are rated “A” by Fitch Ratings and are structured for seven years of interest only, followed by aggregate level debt service through the final maturity in 2045. They are structured with a short call feature with the bonds subject to optional redemption on October 1, 2032, at par. Proceeds, together with other available funds, will be used to refund the Series 2015 bonds, refund the 2015 bank loan, and pay certain costs of issuance of the bonds.
