Ziegler worked on two financings for separate not-for-profits. First, Ziegler closed $39.24 million Series 2025 tax-exempt, fixed rate bonds for Bethesda Senior Living Communities (BSLC). The bonds were issued through the Colorado Health Facilities Authority. It has been seven years since its last financing in 2018.
BSLC and its parent organization, Bethesda Foundation, own/operate 20 seniors housing communities in Arizona, Colorado, Missouri, Nebraska and Texas. BSLC’s portfolio includes 595 independent living, 1,359 assisted living and 282 memory care units. Bethesda Foundation is a faith-based 501(c)(3) corporation based in Colorado Springs, Colorado. BSLC and Bethesda Foundation specialize in middle income rental housing and services for AL and MC residents. The IL residents are served primarily through the communities they operate (but do not own) in Arizona.
The proceeds of the bonds will be used to finance expansions at three locations, which will add 91 MC units and convert certain units from MC to AL. In connection with the financing, BSLC elected to add its Phoenix campus to the BSLC Obligated Group, which contributed to investor interest in the offering.
Next, Ziegler priced $74.92 million Series 2025A bonds for Retirement Living, Inc. (doing business as Marquette). Marquette is an Indiana-based not-for-profit corporation that owns/operates a life plan community on the North Side of Indianapolis, Indiana. Situated on approximately 46 acres, Marquette features 300 IL units, 47 AL units, 22 MC units and 57 skilled nursing beds. It has been operated by Life Care Services since 1980.
Proceeds of the Series 2025A bonds will be used to refund all of Marquette’s existing long-term indebtedness (Series 2015A, 2017 and 2021A), fund $25 million in new money capital for various campus improvements and cover costs incurred with the issuance of the bonds. The Series 2025A bonds are being issued through the Indiana Finance Authority.
As part of its financing strategy, Marquette is extending the maturities of the refunded debt to create a level annual debt service structure, inclusive of the new money component. The Series 2025A bonds have a 30-year final maturity resulting in a weighted average maturity of 18.94 years, and a blended yield to maturity of 5.25%. The offering attracted participation from 18 institutional investors.
The transaction delivered debt service savings and secured $25 million in new funding while implementing a favorable amortization structure that results in stable, level annual debt service going forward.
