Ziegler closed Meadowlark Hills’ $53.8 million Series 2025 bonds through the City of Manhattan, Kansas. Founded in 1975, Meadowlark is a CCRC on 55 acres in Manhattan with 137 independent living apartments, 50 independent living duplexes and cottages, 38 assisted living apartments, and a 134-bed skilled nursing facility (60 private beds and 74 semi-private). Meadowlark Hills offers primarily “Type B” entrance fee plans to their residents.
Meadowlark most recently came to the bond market in 2022 to fund “The Monarch” expansion, which filled in just 40 days. Meadowlark currently maintains a waitlist of over 400 prospective residents for its current campus. This financing funds its next expansion “The Aster,” a 43-unit independent living apartment building with 64 underground parking spaces, a clubhouse on the top floor, fitness center, classroom space for Meadowlark’s Cancer, Parkinson’s, and Memory program, and an enlargement and beautification of the community’s pond. Meadowlark has presold 42 of the 43 new apartments.
Meadowlark has partnered with Ziegler for over 25 years, with this transaction marking its sixth financing with Ziegler since 1999. The 2025 bonds consist of a mix of short-term fixed rate bonds (TEMPS-50 and TEMPS-85, expected to be repaid at approximately 50% and 85% occupancy, respectively) and long-term fixed rate bonds amortizing around Meadowlark’s existing debt to result in level annual debt service payments through maturity. The bonds are subject to optional redemption on June 1, 2032, at 103%, declining to par in 2035.
Proceeds of the Series 2025 bonds, together with other available funds, will be used to fund project costs of The Aster, fund interest on the bonds for a period of 26 months (construction plus three months), fund a deposit to the Master Reserve Fund for the 2025A bonds, and pay costs of issuance. The 2025B bonds do not have a debt service reserve fund. The 2025 bonds were well-received in the market with 22 institutional and local Kansas retail accounts.
