Combining Obligated Groups to Optimize Credit and Refinancing Outcome
$29,704,476 | MD, PA, DE | October 2025
“Asbury successfully worked with HJ Sims for the fourth time. Partnered Right, Structured Right, Executed Right and Financed Right are not just HJ Sims taglines, they are the reality every senior living provider will experience working with the Sims team.”
Partnered Right®
Asbury is a not-for-profit senior living organization that owns and operates communities throughout Maryland, Pennsylvania, and Delaware. They own two entities, Albright Care Services, which operates two entrance fee life plan communities in Pennsylvania, and Asbury Living, which operates two rental communities in Pennsylvania and Delaware. Asbury affiliated with Albright Care Services in 2020 to provide the organization with access to more robust operational support services. Asbury then formed Asbury Living in 2023 as part of the acquisition of the two rental communities.
Both entities had put dates or balloon payments upcoming for their outstanding debt in late 2025. Asbury engaged HJ Sims to assist with securing financing to refinance its existing debt for both entities. HJ Sims has partnered with Asbury several times over the past 7 years, most recently in 2022 for two capex financings for its Maryland and Pennsylvania Obligated Groups.
Structured Right®
As part of structuring the refinancing, Sims suggested that Asbury combine the two entities into one obligated group to enhance the overall credit profile. Albright Care Services operated two well-performing life plan communities that recently divested of a skilled nursing facility, which resulted
in improved operating margins. Asbury Living’s two rental communities were also performing well, and unlike many entrance fee communities, did not rely on turnover entrance fees to pay debt service. Combining these two entities improved key metrics including debt service coverage, days cash on
hand, and cash to debt.
HJ Sims then reviewed whether to use fixed rate bonds or bank financing to refinance the debt. In early 2025, the bank market had started to improve significantly compared to 2023-24, with many banks re-entering the senior living space and providing competitive terms. HJ Sims suggested that Asbury solicit bank proposals first to determine bank appetite for the refinancing. Further, the projected loan size of $30 million was such that smaller banks could potentially bid on the opportunity.
Executed Right®
HJ Sims prepared the bank solicitation package and shared the materials with banks active in the not-for-profit senior living sector in the spring of 2025. Asbury ultimately received five competitive term sheets following the solicitation. After several rounds of negotiations, Asbury selected Old National Bank (ONB). ONB provided competitive terms that included attractive interest rate pricing, covenants consistent with Asbury’s preferred form of Master Trust Indenture, and a long bank commitment period. ONB also expressed an interest in growing with Asbury over time as they have future capital needs across the organization. With the competitive term sheet executed, Sims pulled together the working group to start the issuer approval and legal documentation process.
Financed Right®
On October 1st, Asbury closed on the $29.7 million refinancing. They executed two swaps at 3.93% and 4.04% following the closing. The refinancing for the Asbury Living debt effectively cut the interest rate in half, replacing the high taxable interest rate debt with low cost tax-exempt debt. The financing also eliminated put/balloon risk and locked in a low cost of capital in the current market, allowing Albright Care Services and Asbury Living to continue to serve seniors well into the future.
Aaron Rulnick
203.418.9008
David Saustad
214.909.8588
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