Ziegler secured a revenue bond series for its client, Integrace, Inc., an affiliate of Acts Retirement-Life Communities as of April 1, 2019, to restructure and refinance its debt, which was held with multiple banks and other investors, and to take advantage of low borrowing costs at the time. So, with the help of Ziegler, Integrace issued $99.3 million in bonds, consisting of a tax-exempt series that were priced to yield 2.84% and a taxable series priced to yield 3.3%.
The taxable bonds were structured with a 15-year commitment from a large institutional investor, while the tax-exempt bonds came with a seven-year commitment. Neither series had a debt service reserve fund and were not rated. Integrace will be able to fund certain capital improvements thanks to the financing, in addition to paying costs of issuance.
