The Methodist Retirement Center of Central Ohio, a not-for-profit, faith-based corporation doing business as The Wesley Communities, recently refinanced its three senior living communities in the Columbus, Ohio area with a bond financing arranged by Ziegler. This was Ziegler’s first underwriting with The Wesley Communities. The portfolio comprises 668 units of independent living, assisted living, memory care and skilled nursing. However, the obligated group excluded the assisted living, memory care and skilled nursing units at one campus and the AL and MC units at another (260 units altogether) that were financed by HUD. So, the obligated group actually consists of 408 units across the three campuses.
The $69.535 million bond series will help refund all outstanding debt of the obligated group, terminate a swap on the existing debt, fund $4.0 million of new money projects that will be used to finance building façade improvements at one location and the infrastructure for additional independent living villages at another campus. Proceeds will also finance a debt service reserve fund and pay eligible costs of issuance. Ziegler priced the non-rated bonds with an aggregate yield-to-maturity of 5.036%. The bonds also come with a call provision of seven years at 103%, declining to par in year-10.
