Ziegler announced the pricing of $41.71 million Series 2025A bonds for repeat client Maryfield, Inc. doing business as Pennybyrn. Pennybyrn is a North Carolina not-for-profit corporation incorporated in 1947 by the Congregation of the Poor Servants of the Mother of God, an order of the Roman Catholic Church. Now sponsored by the Roman Catholic Diocese of Charlotte (NC), Pennybyrn owns and operates a CCRC on 72 acres in High Point, North Carolina. Pennybyrn currently operates 222 independent living units (173 apartments and 49 cottages), 48 assisted living units (24 standard care and 24 memory support) and 125 skilled nursing beds (24 rehabilitation and 101 long-term care).
Proceeds of the Series 2025 bonds will be used to refund Pennybyrn’s Series 2015 bonds, fund $3 million in new money capital for various campus improvements, fund a debt service reserve fund and fund the costs incurred with the issuance of the bonds. The Series 2025 bonds are non-rated and are being issued through the North Carolina Medical Care Commission.
As part of the financing strategy, Pennybyrn is extending the maturity on the refunding component that, even when factoring in the debt service of the new money component, will result in a reduction of their maximum annual debt service by $1.1 million. The Series 2025 bonds have a 30-year final maturity with an amortization structure that results in a weighted average maturity of 11.4 years, and a blended yield to maturity of 4.78%.
