Ziegler announced that it priced Ohio Living’s Series 2023 bonds to be used to refund existing bank debt, terminate an interest swap agreement, fund a debt service reserve fund and fund approximately $3 million of capital expenditures across the organization’s portfolio. The not-for-profit owns and operates 12 communities throughout Ohio, making it the second largest not-for-profit provider in the state.
The bonds consist of tax-exempt fixed interest rate serial and term bonds with an 18-year final maturity. They feature a three-year interest only period with annual principal amortization starting in 2026. Ohio Living decided to utilize fixed interest rate bonds to refund a portion of its bank capital following the turbulence experienced in early 2023 in the bank credit markets.
As part of the bond marketing process, Ohio Living’s management team made an in-person presentation to an audience of potential institutional investors attending Ziegler’s annual senior living investor workshop. The marketing and negotiated sales process resulted in six institutions participating in the offering, two of which were new investors to Ohio Living. The overall resulting average yield on the bonds was 5.24% and they are callable in seven years at 103%, declining to par in 10 years. The bonds have an investment-grade rating of “BBB-” from Fitch Ratings.
Ziegler has served Ohio Living many times as underwriter and placement agent over the past 30 years, most recently in 2022 when it served as sole underwriter on the Series 2022 fixed rate bond issuance, which was a six-month forward-settle refinancing.
