**This financing has been successfully closed. Please contact you advisor for any potential secondary market opportunities.**
$79,065,000*
DULUTH ECONOMIC DEVELOPMENT AUTHORITY
(St. Louis County, Minnesota)
Revenue Bonds
BENEDICTINE HEALTH SYSTEM
SERIES 2021A
HJ Sims is pleased to serve as sole underwriter for tax-exempt Series 2021A revenue bonds on behalf of Benedictine Health System, a Minnesota nonprofit corporation, a Catholic healthcare system that provides long-term care services, congregate housing, assisted living, rehabilitation services and other health-care and social services. Benedictine is the 10th largest not-for-profit senior living provider in the country. Benedictine Health System is the parent corporation of the Obligated Group, among other entities.
The Benedictine Obligated Group consists of 21 senior living communities in Minnesota and North Dakota that in aggregate comprise of 1,242 nursing beds, 811 assisted living units, and 153 independent living units.
The vision of Benedictine is to enhance its communities (Benedictine Living Communities) where health, wellness and choice come to life. The core values of Benedictine are hospitality, stewardship, respect, and justice.
About the Bonds
- Series 2021A
- $79,065,000*
- Non-rated, tax-exempt
- Bonds are exempt from Federal Income Tax and exempt from State of Minnesota Income Tax
- Denominations of $5,000
- Interest will be payable on January 1 and July 1 of each year, commencing January 1, 2022
- First principal payment: July 1, 2022
Project
- Fund $10,000,000 of capital improvements at select communities
- Refund the outstanding tax-exempt bank debt on the Minnesota communities
- Fund Debt Service Reserve Fund
Security
- Secured by gross revenues and mortgage.
- Debt Service Reserve Fund.
 Key Financial Covenants
- 1.20x Debt Service Coverage Ratio; tested annually.
- 60 Days Cash on Hand; tested semi-annually.
We are currently accepting indications of interest for these tax-exempt bonds with an expected pricing the week of June 28, 2021, and anticipated settlement during the week of July 12, 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 Benedictine Health System, Benedictine Obligated Group or any of its related entities or any other organization referred to herein.