Ziegler announced the closing of $42.4 million of Cinderella Bank Placement bonds and a $7 million taxable revolving line of credit for Rose Villa, an Oregon not-for-profit corporation. Operating as a CCRC on 21.5 acres just southeast of Portland, Oregon, the community comprises 261 independent living units, 16 skilled nursing beds and 16 residential care (assisted living) beds. In addition, Rose Villa’s Phase III project consists of 41 new independent living units, and a replacement supportive care neighborhood opened in July 2022. The Phase III project is 100% presold.
The borrower will use the proceeds of the Series 2022 bonds, and other available funds, to refinance the Series 2014A bonds, fund an incremental debt service reserve fund at the master indenture level, and pay costs of issuance. Truist Bank will provide a 12-year commitment on the Series 2022 bonds and a five-year commitment on the taxable revolving line of credit.
The Series 2022 bonds will amortize monthly over 27 years with a final maturity on November 1, 2049, matching the refinanced 2014A bonds. The Series 2022 bonds are initially taxable at an interest rate of Term SOFR + 1.60% (Taxable Rate), converting to 79% of the Taxable Rate 90 days prior to the November 15, 2024 call date.
To mitigate interest rate risk, Rose Villa worked with Ziegler Structured Products to synthetically fix interest rates on the series 2022 bonds at an all-in rate of 5.021% during the taxable period and 3.604% during the tax-exempt period.
Ziegler also announced it arranged $74.6 million in financing for Heron’s Key, a CCRC located in Gig Harbor, Washington. The community comprises 194 independent living units, 51 assisted living units and 30 skilled nursing beds. Heron’s Key is a subsidiary of Redmond-based Emerald Communities, which will use proceeds of the Cinderella bank placement loan with other available funds to advance refinance its 2015 bonds, which financed the original construction of the community. The loan was placed directly with Truist Bank with a 10-year commitment.
