Ziegler closed an $80.0 million tax-exempt fixed-rate bond issue for Brazos Presbyterian Homes (BPH). The Series 2025 bonds were issued through the New Hope Cultural Education Facilities Finance Authority. BPH owns and operates three continuing care retirement communities in Texas.
Brazos Towers at Bayou Manor, which opened in 1963, sits on a seven-acre campus between Meyerland and West University, two neighborhoods in Houston, Texas. The Hallmark was acquired by BPH in 1972 and comprises five acres in the heart of the Galleria neighborhood of Houston. Longhorn Village opened in 2009 and was acquired by BPH in 2018. It is on 55 acres within the planned development known as “Steiner Ranch” on the edge of the central Texas Hill Country in Austin.
The proceeds of the Series 2025 bonds will be used, together with other available funds, to finance various capital expenditures at the communities, refund portions of outstanding indebtedness to reduce interest expense and eliminate bank renewal risk, establish a debt service reserve fund, and pay associated costs of issuance for the Series 2025 bonds. Brandon Powell of Ziegler handled the closing of the bond issue, which was upsized from $55 million to $80 million after the Preliminary Official Statement was released.
Ziegler next closed Fox Run at Orchard Park’s $67.665 million Series 2025 tax-exempt revenue bonds through The Dormitory Authority of the State of New York. Orchard Park CCRC, Inc. is a not-for-profit corporation that operates a CCRC outside of Buffalo.
Fox Run began operating in 2007, and there are 180 independent living units comprising 30 patio homes and 150 apartments in a two-story building with a health center and a community center. The health center contains 60 skilled nursing beds and 52 assisted living units that include 18 memory care units.
The Series 2025 proceeds will be used to add 63 new independent living apartments, eight new independent patio homes, renovate the existing common space and new common space additions. Three new IL apartment wings will be connected to the existing campus independent living apartment building. The Series 2025AB bonds are structured as two term bonds (Term 2050/Term 2055) and three TEMPS bonds (TEMPS 50/70/85).
