HJ Sims Financing Catalysts for Future Growth Video

Senior living organizations may take several approaches to achieving financial success for their communities. However, there are certain strategies that can save time and money, and ultimately execute an effective, long-term and innovative financing solution for any capital needs. These strategies are focused on not only expanding capital and debt capacity, but also driving a lower cost of capital, all to support accelerated and smart growth.

For more information, watch the full six-minute video. Please reach out to our banking representatives with any questions or for assistance helping you find a Financed Right® solution.

Testimonials may not be representative of the experience of other clients and are not indictive of future performance or success.

Find the Right Structure for Your Unique Capital Needs

Advisory Services to Face Challenges or Opportunities

An Investment Opportunity: Landis Homes

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Landis Homes Logo

$52,210,000*
LANCASTER INDUSTRIAL DEVELOPMENT AUTHORITY

Health Center Revenue Refunding Bonds
Landis Homes Retirement Community
SERIES 2021

HJ Sims is pleased to serve as sole underwriter for tax-exempt Series 2021 revenue refunding bonds on behalf of Landis Homes, located in Lititz, PA. Landis Homes is a not-for-profit retirement community which is home to 875+ persons living in cottages, apartments, hybrids, suites, personal care and healthcare on a 114-acre campus surrounded by
Lancaster County farmland.

Landis Homes is an affiliate of the Landis Communities, which started in the early 1960s when Eastern Mennonite Board of Missions and Charities (now EMM) began exploring how they might develop a community for retired mission workers, pastors and others. Landis Communities is the location of choice for those who follow the Mennonite faith tradition. There is a very strong connection to the local churches and almost 55% of the residents come from the Mennonite faith. Most Mennonite Communities in Lancaster County do not have a similar representation.

Landis Communities is committed to creatively serving the diverse needs and interests of older adults. These needs come from a cross-section of races, ethnicities, and socioeconomic status.

About the Bonds

  • Series 2021
    • $52,210,000*
    • Fitch Rated “BBB-” Stable Outlook
    • Bonds are exempt from Federal Income Tax and exempt from State of Pennsylvania Income Tax
    • Denominations of $5,000; no transfer restrictions
    • Interest will be payable on January 1 and July 1 of each year, commencing January 1, 2022
    • First principal payment: July 1, 2023

Project

  • Refund outstanding bank debt
  • Expected renovation and improvement of facilities, independent living areas and housing units.

Security

  • Secured by Master Trust Indenture
    • Includes pledge of Gross Receipts of the Obligated Group and mortgage of substantially all real estate of the Borrower
  • 50% Funded Debt Service Reserve Fund

 Key Financial Covenants

  • 1.20x Debt Service Coverage Ratio; tested annually
  • 120 Days Cash on Hand; tested semi-annually
  • Event of Default if DSRC is below 1.00x for two consecutive fiscal years

We are currently accepting indications of interest for these tax-exempt bonds with an expected pricing the week of September 13, 2021, and anticipated settlement during the week of September 27, 2021. For more information including risks, please read the Preliminary Official Statement in its entirety. If you have interest in purchasing these bonds, please contact your HJ Sims financial professional as soon as possible.

*Subject to change

No dealer, broker, salesperson, or other person has been authorized to give any information or to make any representation other than those contained in the Preliminary Official Statement and, if given or made, such other information or representation should not be relied upon as having been authorized by the Issuer, the Borrower, or the Underwriters. The information set forth herein has been obtained from the Issuer, Borrower, and other sources that are believed to be reliable, but is not guaranteed as to accuracy or completeness by, and is not construed as a representation of, the Underwriters. The information contained herein is subject to change without notice. Under no circumstances shall this constitute an offer to sell or solicitation of an offer to buy, nor shall there be any sale of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. Any offering or solicitation will be made only to investors pursuant to the Preliminary Official Statement, which should be read in its entirety. Investments involve risk including the possible loss of principal. HJ Sims is a member of FINRA and SIPC, and is not affiliated with Landis Homes

HJ Sims secures $45M taxable credit facility for human services non-profit

HJ Sims closed a $45 million refinancing package for Elwyn, a Media, Pennsylvania-based nonprofit provider of support, treatment and education to children and adults with intellectual and developmental disabilities, autism and related behavioral health issues in the U.S. Elwyn delivers education, residential and community-based treatment, and vocational training programs to more than 20,000 individuals in California, Delaware, New Jersey, Pennsylvania, Rhode Island, Maine, Massachusetts, North Carolina, and Virginia. 

Read more in Senior Housing News.

LeadingAge NY Financial Professionals Conference

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2021 Conference

HJ Sims is proud to be able to attend, exhibit, sponsor and speak on a session panel. 

Visit us at the HJ Sims Booth.

Session Date & Time: Thursday, September 2, 2021 from 8:45am – 9:45am ET

Thought Leadership and Educational Session:

Should I Refinance My Debt? (And If So, How?)

Interest rates remain low and the consensus regarding increased rates is not a matter of if but when. This session will provide a variety of options every organization should explore, from “Cinderella” and forward delivery bonds to tender options and taxable debt to maximize savings. We also will explore refinancing options for HUD-insured projects, including the Section 232/223(f), 223(f) and 223(a)7 mortgage insurance programs, and HUD’s streamlined Interest Rate Reduction (IRR) protocol.

Featured Speakers:

Contacts:

  • Andrew Nesi, Executive Vice President, HJ Sims
  • Anthony Luzzi, President, Sims Mortgage Funding
  • James Bodine, Executive Vice President, HJ Sims

Read more insightful thought leadership by the investment banking team at HJ Sims.

HJ Sims Assists Elwyn Secure Replacement $45 million Taxable Credit Facility

FOR IMMEDIATE RELEASE

CONTACT: Tara Perkins, AVP | 203-418-9049 | tperkins@hjsims.com

HJ Sims Assists Elwyn Secure Replacement $45 million Taxable Credit Facility

FAIRFIELD, CT– HJ Sims (Sims), a privately held investment bank and wealth management firm founded in 1935, is pleased to announce the successful closing of a June 2021 refinancing for $45,000,000 for Elwyn, the oldest and largest not-for-profit provider of support, treatment and education to children and adults with intellectual and developmental disabilities, autism and related behavioral health issues in the U.S.

Headquartered in Media, PA, Elwyn delivers education, residential and community-based treatment, and vocational training programs to more than 20,000 individuals in California, Delaware, New Jersey, Pennsylvania, Rhode Island, Maine, Massachusetts, North Carolina, and Virginia. Elwyn generates approximately $400 million in annual revenue and employs 3,500+. 

Elwyn engaged Sims in late 2020 to identify and implement a replacement credit facility and a new commercial banking relationship. Elwyn was executing a variety of initiatives pre-COVID19, including:

  • Implementing financial turn-around plan
  • Hiring a new CEO
  • Shifting reimbursement methodology with overall enhanced organizational revenue cycle management
  • Modernization of information technology systems
  • Integration of a behavioral services acquisition program and real estate holding evaluation
  • Prioritization and selective monetization of non-core real estate holdings

Elwyn faced COVID-19 related challenges, including reduced/shifted programming and challenged staffing availability. Elwyn effectively continued the transition, resulting in improved profitability along with significant increases in cash flow, which was applied to build liquidity along with a significant pay-down on its outstanding line of credit.

Sims conducted a comprehensive bank solicitation seeking a $45 million taxable credit facility, comprised of a $30 million line of credit and letters of credit for up to $15 million. The facility is secured by a pledge of gross revenues and a mortgage on Elwyn’s main campus on parity with Elwyn’s $56 million of outstanding tax-exempt bonds and tax-exempt/taxable bank debt.

Elwyn opted to combine participation of two new banking partners, with Key Bank providing up to $30 million and Bank United providing up to $15 million. Among the highlights of the new facility are interest rate denominated in SOFR (Secured Overnight Funding Rate) reflective of the upcoming transition from LIBOR as the industry benchmark interest rate; competitive interest rate pricing along with up-front and ongoing fees; integration with Elwyn’s outstanding long-term debt related to debt security and covenants; and expedited closing.

The closing represents an attractive replacement to Elwyn’s prior credit facility, and provides a reduced loan credit spread by approximately 75 basis points with liberalized reporting covenants. Sims was honored to play a role and to continue a 30-year banking relationship with Elwyn.

“We were fortunate to have Jim Bodine and Siamac Afshar shepherd us through the refinancing of our short-term line of credit in FY 2020. This represented a major turning point for Elwyn. Sims facilitated the process during COVID-19 under extraordinary circumstances. The team was professional, experienced and highly competent. Exactly what we needed, precisely when we needed it. We will continue to use Sims for similar activity in the future, post turnaround, as we return to strategic planning and growth,” Charles McLister, CEO, Elwyn.

Financed Right® Solutions—Jim Bodine: 267.360.6245 | jbodine@hjsims.com or Siamac Afshar: 276.360.6250 | safshar@hjsims.com

ABOUT HJ SIMS: Founded in 1935, HJ Sims is a privately held investment bank and wealth management firm. Headquartered in Fairfield, CT, Sims has nationwide investment banking, private wealth management and trading locations. Member FINRA, SIPC. Testimonials may not be representative of another client’s experience. Past performance is no guarantee of future results.  Facebook, LinkedIn, TwitterInstagram.

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HJ Sims Market Commentary: Madcap Mid-Summer

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We are literally mid-summer and whether we are in the middle of our vacation or our workweek, we are never more than a few minutes away from a device blasting the latest headlines from every corner of the globe and even news from outer space.

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