Ziegler announced the closing of Garden Spot Village’s $67.27 million Series 2024 Tax-Exempt Fixed Rate bonds. The obligated group consists of Garden Spot Village and its subsidiary, GSV, LLC, and Garden Spot’s parent organization is the not-for-profit Garden Spot Communities.
Garden Spot Village is a CCRC with 621 independent living homes consisting of 306 apartments and 315 cottage-style homes, 65 personal care units, 40 memory support units and 75 skilled nursing beds across 220 acres in New Holland, Pennsylvania. GSV also owns and leases Center for Health, an ambulatory health care building that sits at the entrance to the campus. WellSpan Health leases the Center, providing a variety of medical services available to residents of the campus and the broader community.
The proceeds of bonds will be used to refund and retire the organization’s outstanding Series 2019 bank obligations and finance the construction of a state-of-the-art cogeneration power plant, renovations to the existing health center, and other capital expenditures.
The Series 2024 bonds are rated BBB- by Fitch Ratings and are issued through The Lancaster Municipal Authority. The bonds have a final maturity of 35-years and were priced with a weighted average yield to call of 4.41% and a weighted average yield to maturity of 4.50%. They were sold without a debt service reserve fund. Investor demand for the issue was strong, with 31 institutions participating in the offering and significant distribution to Pennsylvania specific funds.
Amy Castleberry of Ziegler handled the transaction. Malcolm Nimick with Ascension Capital served as Financial Advisor.
