HJ Sims Advises Presbyterian Villages of Michigan on Financing Independent Living Rental Expansion Project

FOR IMMEDIATE RELEASE             

October 15, 2020

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

HJ Sims Advises Presbyterian Villages of Michigan on Financing Independent Living Rental Expansion Project

FAIRFIELD, CT– HJ Sims (Sims), a privately held investment bank and wealth management firm founded in 1935, is pleased to announce the successful September 2020 financing in the amount of approximately $38.18 million for Presbyterian Villages of Michigan (PVM), an award-winning non-profit, aging services network assisting people of all faiths and diverse communities across MI since 1945.

Sims completed its first financing with PVM in 2015, serving as underwriter for PVM’s Series 2015 bonds. Since 2015, Sims has continued to provide PVM with advisory services for planning future capital expansion projects, monitoring debt capacity and analyzing the obligated group structure.

In 2002, PVM acquired land immediately adjacent to its Village of East Harbor campus for an expansion project. In 2018, The Village of East Harbor completed a new Health and Wellness Center. The current project being financed comprises the final phase of the Health and Wellness Center project, and a new independent living rental expansion project known as Harbor Inn. The Harbor Inn campus will include 12 rental single-level ranch homes, 36 rental independent living units, and a three-story apartment building, encompassing 60 independent living units.

PVM’s board, based on analysis provided by Sims, decided to absorb the Harry & Jeannette Weinberg Green Houses at Rivertown Neighborhood (Weinberg) into the Obligated Group, in addition to adding Harbor Inn to the Obligated Group. Sims worked with PVM and Fitch Ratings to secure a “BB” rating for the new bond issuance, and existing Series 2015 bonds. Weinberg is a 501(c)(3) designated, MI non-profit corporation located in Detroit. PVM has a Use Agreement with PACE Southeast MI, a joint venture of Henry Ford Health System and PVM, for the exclusive use of the Weinberg. Absorbing Weinberg into the Obligated Group allowed PVM to refinance the Weinberg Green Houses’ outstanding CDFI debt as part of the 2020 tax exempt bond financing.

The financing successfully closed on September 30, consisting of $18.18 million of Series 2020A bonds underwritten by Sims, and $20 million Series 2020B direct placement draw-down bonds purchased by Huntington Public Capital Corporation.

The Series 2020B bonds were issued in a floating-rate mode and hedged with a forward-starting SWAP beginning at the end of the draw period, and cancellable in five years, as well as a seven-year final maturity matching the loan tenor. The projected combined cost of capital of the 2020A and 2020B bonds is 3.48%.

“Following up on the 2015 restructuring and financing, HJ Sims went back to work with PVM’s Board and management leadership to provide key guidance to PVM’s next steps in expanding and strengthening its Obligated Group, resulting in the 2020 restructuring and financing, remarkably during COVID-19. Sims provided excellent leadership to the financing team. PVM looks forward to working with our partners at Sims as we immediately explore other financing needs to expand and reposition our service offerings,” Said Brian Carnaghi, SVP of Finance and Business Development, CFO, Treasurer, PVM.

Financed Right® Solutions—Aaron Rulnick: arulnick@hjsims.com, 301-424-9135 | Patrick Mallen: 301-448-7111,  pmallen@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, Twitter,  Instagram.

An Exclusive Investment Opportunity: John Knox Village

$72,480,000*
City of Pompano Beach, Florida
Tax-exempt Revenue and Revenue Refunding Municipal Bonds
Series 2020
(John Knox Village)

HJ Sims is pleased to serve as the sole underwriter for John Knox Village of Florida, Inc. (John Knox) is a 501(c)(3) corporation incorporated and existing under the laws of the State of Florida. John Knox owns and operates a Life Plan Community (LPC) located on approximately 65 acres in the City of Pompano Beach, Broward County, Florida. John Knox has grown from a small retirement community, consisting of a three-story building and 24 triplexes surrounding a lake, to the second largest CCRC in the State, and is comprised of 654 independent living units with various common areas; 62 assisted living units and associated common areas; and 194-bed skilled nursing suites (total 912 units).https://www.hjsims.com/johnknoxvillage

About the Bonds

  • Series 2020
    • $72,480,000*
    • Rated “A- Negative Outlook“ by Fitch Ratings
    • Tax-exempt from Federal Income Tax
    • Minimum denominations $5,000

 Use of Proceeds

  • Campus improvements, including the development of a community pavilion that houses a performing arts center, dining and other amenities
    • $41.5mm in project costs
      • $36.16mm in Pavilion Project costs
      • $5.4mm reimbursement in capital expenditures previously incurred
    • Refunding of $19.075mm in outstanding Series 2010 Bonds
    • Repayment of $12.2mm Line of Credit
    • Fund 20 months’ of Capitalized Interest
    • Fund a Debt Service Reserve

Security

  • Revenue Pledge
  • First Mortgage
  • Debt Service Reserve Fund

Key Financial Covenants

  • Debt Service Coverage Ratio – 1.10x tested on an annual basis
  • Days Cash on Hand – 100 days tested on an annual basis
  • Additional Debt Test
  • Limitations on Transfers

We are currently accepting indications of interest for these tax-exempt revenue bonds with an expected pricing week of October 19, 2020, and anticipated settlement week of October 26, 2020. 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 advisor, as soon as possible or call 877.577.3364.

LEARN MORE
877.577.3364

*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 John Knox Village.

HJ Sims Secures $6.5 million Additional Debt Financing for Capital Improvements

FOR IMMEDIATE RELEASE

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

HJ Sims Secures $6.5 million Additional Debt Financing for Capital Improvements

FAIRFIELD, CT– HJ Sims (Sims), a privately held investment bank and wealth management firm founded in 1935, is pleased to announce the successful August 2020 transaction in the amount of $6.5 million additional debt financing for capital improvements for the Philadelphia Protestant Home (PPH). PPH operates a continuing care retirement community in northeast Philadelphia, featuring 266 independent living units, 175 personal-care units and 126-bed nursing facility.

PPH has been funding capital improvements from general fund revenues. To efficiently manage cash-flow, PPH elected to finance $6.5 million of upcoming capital improvements. Sims, as financial advisor, developed a financing plan that provided for the funding of the required capital improvements, while implementing a structure that maintained maximum flexibility to maintain their debt service at manageable levels.

Prior to engaging PPH’s existing banking partner, Citizens Bank (Citizens), Sims worked with the PPH Fiscal Oversight Committee to develop structuring options. Following engagement of Citizens, Sims led the effort in working with Citizens to finalize the debt structure, within the confines of the bank’s requirements. Due to impacts of COVID-19, Sims negotiated a modified Debt Service Coverage test to the benefit of PPH. The additional obligations were structured as parity debt with PPH’s outstanding Series 2015 obligations.

Citizens provided $6.5 million of senior debt financing, fully amortizing in ten-years, and a five-year interest-only period followed by monthly principal amortization. The obligations were structured with a five-year, PPH-owned par call provision, and were issued on a tax-exempt basis through the Philadelphia Authority for Industrial Development (PAID). This provision was paramount as PPH’s existing Series 2015 Obligations mature in seven years, while Citizens could only defer principal on the Series 2020 obligations for five years. This call feature will allow PPH to restructure future debt at minimal cost.

Following closing of the Series 2020 Bonds, PPH locked in a synthetic fixed-rate on the debt. Sims served as Swap Advisor for the swap transaction, which also bears a mirroring, PPH-owned par termination right in five years, to align with the Citizens’ loan.

Sims, Citizens, PAID and the financing team worked diligently with PPH to secure final approvals, including navigating through unanticipated delays followed by the onset of COVID-19, to successfully close the financing.

“The HJ Sims’ commitment to incomparable client services has once again served The Philadelphia Protestant Home well. Despite the unforeseen challenges and uncertainly resulting from the pandemic, the Sims’ team provided valuable insight and unwavering advocacy to assure our financing needs were achieved. We are thankful for our partnership, the integrity, and collaboration with Aaron Rulnick and Siamac Afshar, for always putting what is in the best interest of PPH, first,” said John Dubyk, CEO, PPH. Philadelphia Protestant Home

Financed Right® Solutions—Aaron Rulnick: arulnick@hjsims.com or 301-424-9135 | Siamac Afshar: safshar@hjsims.com or 267-360-6250.

ABOUT HJ SIMS: Founded in 1935, HJ Sims is a privately held investment bank and wealth management firm. Headquartered in Fairfield, CT, HJ Sims has nationwide investment banking, private client wealth management and trading locations. Member FINRA, SIPC. Facebook, LinkedIn, Twitter,  Instagram.

# # #

An Exclusive Investment Opportunity: Toby and Leon Cooperman Sinai Residences at Boca Raton

$143,745,000*
Palm Beach County Health Facilities Authority
Series 2020A Long Term Fixed Rate Bonds $56,645,000
Series 2020B-1 Entrance Fee Principal Redemption BondsSM $29,030,000
Series 2020B-2 Entrance Fee Principal Redemption BondsSM $58,070,000
(SINAI RESIDENCES PHASE II EXPANSION)

HJ Sims is pleased to serve as the sole underwriter for Toby and Leon Cooperman Sinai Residences of Boca Raton (Sinai) to fund an expansion via the sale of tax-exempt, long-term, fixed rate and tax-exempt Entrance-fee Principal RedemptionSM bonds. In 2014, HJ Sims served as senior managing underwriter for the municipal revenue for Phase I of Sinai, a continuing care retirement community located in Boca Raton, Florida. Federation CCRC Operations Corp. is a Florida 501(c)(3) located on the campus of the Jewish Federation of South Palm Beach County (The Federation) in Boca Raton, Florida. The site is known as/dba The Toby and Leon Cooperman Sinai Residences of Boca Raton. Sinai’s initial independent living units became available for occupancy in January 2016, and were almost fully occupied within six months, with 100% occupancy occurring 11 months after opening. Sinai’s currenlty consists of 234 independent living units, 48 assisted living units, 24 memory support units and 60 Skilled Nursing Rooms.

Artist's Rendering; subject to change

Virtual Site Visits/Tours

Please find links below to virtual tours of the existing campus, expansion project and floor plans:

About the Bonds

  • Series 2020A
    • $54,110,000
    • Non-rated, tax-exempt
    • Bonds are exempt from Federal Income Tax and exempt from State of Florida Income Tax
    • Denominations of $5,000
    • Interest will be payable on June 1 and December 1 of each year, commencing December 1, 2020
    • Final maturity: June 1 2055
  • Series 2020B-1
    • $29,030,000
    • Non-rated, tax-exempt Entrance-fee Principal RedemptionSM bonds
    • Bonds are exempt from Federal Income Tax and exempt from State of Florida Income Tax
    • Denominations of $5,000
    • Interest will be payable on June 1 and December 1 of each year, commencing December 1, 2020
    • Final Maturity: June 1, 2027
  • Series 2020B-2
    • $53,070,000
    • Non-rated, tax-exempt Entrance-fee Principal RedemptionSM
    • Bonds are exempt from Federal Income Tax and exempt from State of Florida Income Tax
    • Denominations: $5,000
    • Interest will be payable on June 1 and December 1 of each year, commencing on December 1, 2020
    • Final maturity: June 1, 2025
  • Series 2020C
      • $5,000,000
      • Non-rated, TAXABLE Entrance-fee Principal RedemptionSM
      • Exempt from State of Florida Income Tax
      • Denominations: $5,000
      • Interest will be payable on June 1 and December 1 of each year, commencing on December 1, 2020
      • Final maturity: June 1, 2024
    •  

 Use of Proceeds

  • Phase II Expansion Project
    • The new expansion project will be located on 4.6 acres of the southeast portion of Sinai’s existing 21-acre campus.
    • Low-rise buildings encompassing 111 new independent living units, common and green space, dining facilities and a resort-style pool.
    • The project will include approximately 240,000 in total square footage.
    • The expansion contains a variety of independent living configurations ranging from 880 square feet (one-bedroom) to 3,200 square feet (Valencia) with an average of 1,357 square feet.
    • Monthly service fees will average $5,381 and entrance fees will average $867,721 for all expansion units.
    • Currently, there are 73 depositors reflecting a pre-sale rate of 65.8%.
    • Of the 73 depositors, the average age is 85-years-old, depositor median annual income is $222,000, and depositor median net-worth is $4,593,000.

 Security

  • Interest in amounts of deposit, and gross revenue, including Entrance Fees and accounts receivable
  • Personal property and real estate lien
  • Interest in Debt Service Reserve Fund, Working Capital Fund, Coverage Support Fund and Entrance Fee Fund 

 Key Financial Covenants

  • Debt service coverage ratio of 1.20x (tested annually, reported quarterly)
  • Liquidity covenant of 150 days cash-on-hand (tested semi-annually

We are currently accepting indications of interest for these tax-exempt and taxable bonds with an expected pricing week of August 31, 2020, and anticipated settlement September 15, 2020. 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 advisor, as soon as possible.

LEARN MORE
888.978.1746

*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 Tony and Leon Cooperman Sinai Residences of Boca Raton.

HJ Sims 2020 Late Winter Conference Recap

Thank you!

On behalf of the entire HJ Sims Investment Banking team, we want to thank you for attending the 17th Annual HJ Sims Late Winter Conference at the InterContinenal San Diego in San Diego, California. We at HJ Sims are proud of our commitment to furthering conversation about financing methods & operating strategies in the Senior Living Industry. Bringing together a dynamic group of speakers from Non-Profit and Proprietary Senior Living Providers, as well as outside experts with thought-provoking views, it is our goal to have provided profound insight and an invaluable forum for exchanging ideas and information.

We also recognize that our conference was one of the last in-person events that was fortunate to take place. We appreciate those who attended, and we look forward to when we can get together in-person again.

Post-Conference Follow-Up

Our Conference Recap provides comprehensive coverage of the many sessions and event highlights from the 2020 HJ Sims Late Winter Conference.

Highlights include:

  • Keynote speakers from outside the senior living industry who shared valuable ideas from fields like Canyon Ranch® – the leader in luxury health and wellness introduced a potential new concept for senior living communities; Dr. Matthew Lieberman, a dedicated researcher on cognitive social neuroscience where we explored research indicating that we need to be connected socially to be physically and psychologically healthy; and Dr. Robert Genetski, an economist who led a discussion of the current financial markets where we explored principles vital to economic and political freedom.
  • Informal and memorable activities to bolster connection and conversation, included a glorious morning on the waters of San Diego Harbor for sailors and fishing enthusiasts; golfing at the world-renowned Torrey Pines; tasting a sample of San Diego’s best brewery and distillery products; and sharing an incredible evening with friends and a few new animal pals at the famed San Diego Zoo.
  • Educational sessions that covered topics such as: acute and post-acute care, medical and recreational cannabis, serving middle-income seniors, strategies to avoid moving from a stressed to distressed financial or operational situation, and a new approach to incorporating wellness in senior living.

In case you missed it, below are the details from our 17th Annual HJ Sims Late Winter Conference.

Agenda
Schedule and activities
Roster of conference speakers and their biographies

We invite you to watch the highlights of our conference in a recap video that features all the best parts of our conference. We also invite you to view the many beautiful photos from our conference.

Peruse the photo gallery and video montage below, and visit the HJ Sims Facebook, Instagram, LinkedIn or Twitter pages.

Taco Tuesday Dinner and Reception – LWC2020

San Diego Zoo Reception

Network Breaks

Corporate Social Responsibility: Gift of Life

The Gift of Life (GOL) team was thrilled to provide an update about the strong partnership between HJ Sims and GOL during the last two years, which has helped to promote the registry and subsequently add new donors, as well as supported numerous efforts to advance the GOL mission.

For more information on HJ Sims’ CSR program and Gift of Life, please visit: www.hjsims.com/servingourcommunitites.

Save the Date

Please save the date for next year, the 18th Annual Sims Late Winter Conference at the Sarasota Hyatt Regency, Sarasota, Florida. While we are still grappling with how we will hold our annual conference, rest assured, we will hold one… more to follow. Stay tuned, and stay healthy.

Thanks again!

HJ Sims Expands Investment Banking Team to West Coast, Midwest; Grows Private Client Team in Florida, Puerto Rico

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

HJ Sims Expands Investment Banking Team to West Coast and Midwest; Grows Private Client Team in Florida and Puerto Rico 

FAIRFIELD, CT– HJ Sims (Sims), a privately held investment bank and wealth management firm founded in 1935, is pleased to announce the addition of two senior bankers as the firm expands with the opening of new offices in the Midwest and on the west coast. 

Lynn Daly joins Sims as Executive Vice President in its new Chicago location with 30+ years of experience working with non–profit organizations in financing. Daly was acting head of Senior Living Investment Banking at BB&T Capital Markets, where she managed BB&T’s senior living relationships in the Midwest, facilitating financings of $1.3+ billion. Prior to BB&T Capital Markets, Daly spearheaded the Catholic Initiative within senior living investment banking for Ziegler, and served as Head of Allied Irish Bank’s Midwest region. Daly earned a BS in economics from Kalamazoo College, and an MBA from Northwestern University’s Kellogg Graduate School of Management.  

“We are so thrilled to welcome Lynn Daly to the HJ Sims family. Lynn is a well-respected and nationally recognized thought leader in the senior living sector and the perfect leader to grow our presence in the Midwest and to work with our team as we continue to expand throughout the US. Lynn’s extensive experience as both a senior commercial and investment banker, along with her integrity, deep knowledge, and client-centered approach, are vital characteristics and values that will guide our clients and business partners through these challenging times,” said Aaron Rulnick, Managing Principal, Sims. 

Brady Johnson joins Sims as Senior Vice President in its new west coast office, in Orange County, CA. Previously with Hunt Real Estate Capital, Johnson was responsible for real estate debt originations for seniors housing and healthcare properties. He helped establish the firm’s seniors housing real estate lending platform, including a proprietary bridge loan program and expansion of the firm’s agency and HUD financing capabilities. Johnson closed the firm’s first Fannie Mae seniors housing loan, followed by its first seniors housing Freddie Mac loan. Prior to joining Hunt, Johnson served as Director of Seniors Housing & Healthcare at RED Capital Group, and served with GE Capital in various commercial finance roles. Johnson earned an MBA from Thunderbird School of Global Management and Bachelor’s degrees (Economics and Spanish) from the University of Utah.  

“We are excited to welcome Brady Johnson to the Sims family. Brady will help establish our west coast presence serving for-profit and non-profit senior living clients. Brady’s broad experience in FHA, Fannie Mae, Freddie Mac, mezzanine and senior housing finance, and his focus on achieving the best solutions for his clients make him a great asset,” said Jeffrey Sands, Managing Principal, Sims. 

In late 2019, Sims expanded its Private Client team, adding an office in Jupiter, FL, housing a three-person advisory team, as well as a senior partner of Sims Energy. HJ Sims’ Puerto Rico private client office moved its Guaynabo headquarters to a larger space in Metro Office Park. The spacious quarters enable the team to better host clients, while the expansion reinforces Sims’ established presence and growth on the island. 

HJ SIMS: Founded in 1935, HJ Sims is a privately held investment bank and wealth management firm, headquartered in Fairfield, CT, with nationwide locations. www.hjsims.com. Investments involve risk, including loss of principal. This is not an offer to sell or buy any investment. Past performance is no guarantee of future results. Member FINRA, SIPC. Facebook, LinkedIn, Instagram Twitter. 

Gift of Life: Recap from 17th Annual Late Winter Conference

Gift of Life (GOL) joined our 17th Annual HJ Sims Late Winter Conference February 25-27 in San Diego. GOL was represented by Alicia Lorio, a leader of their Young Professionals Committee in Orange County; and GOL blood stem cell donor, Alec Nadelle.

Alicia shared GOL’s history and spoke about the importance of growing the GOL stem cell registry to give second chances to those afflicted by blood and bone cancer. Before introducing Alec, Alicia shared how individuals can get involved with GOL and increase the number of those within the registry by encouraging individuals to swab their community and swab at their workplace.

Next, Alec shared his experience with GOL. He donated blood stem cells in November 2012 to a (then 71-year-old) woman battling a fast-moving form of Leukemia. The presentation left attendees feeling truly moved.

The team was excited to share an update about the amazing CSR partnership that HJ Sims and GOL have shared during the last two years.

From running fundraising drives to sponsoring the Steps for Life events to helping underwrite equipment for a
new state-of-the-art Stem Cell Collection Center located in Boca Raton, HJ Sims continues to be honored to support GOL and their mission to cure blood cancer through marrow and stem cell donations. GOL has facilitated nearly 3,600 transplants since its inception.

For more information, visit www.giftoflife.org

HJ Sims Leads Largest Refinancing for a Single Site Life Plan Community

FOR IMMEDIATE RELEASE

JANUARY 17, 2018

CONTACT: Tara Perkins, PR & Marketing Specialist | 203-418-9049 | tperkins@hjsims.com

HJ Sims Leads Largest Refinancing for a Single Site Life Plan Community

FAIRFIELD, CT– HJ Sims (Sims), a privately held investment bank and wealth management firm founded in 1935, announced the closing of a financing for NewBridge on the Charles (NewBridge), located in Dedham, MA. The $236,300,000 financing, which closed on December 19, 2017, marked the largest fixed rate public bond issue in 2017 for the refinancing of a single site Life Plan Community.

NewBridge is managed by Hebrew SeniorLife (HSL), one of Massachusetts’ largest not-for-profit healthcare organizations, with nine campuses in metro-Boston, conducting aging research and providing geriatric care education via its affiliation with Harvard Medical School. NewBridge consists of independent and assisted living, and a health care facility.

NewBridge was developed in 2007 with a $457 million tax exempt bond issue underwritten by Sims, the largest issue of its kind. Despite opening during the 2009 recession, NewBridge reached 96% independent living occupancy within 25 months. Sims is privileged to have partnered with HSL for 25 years, financing NewBridge and a sister community, Orchard Cove, in Canton, MA.

Long-term capital stability was a vital objective for NewBridge. With existing debt held by a consortium of commercial banks and a maturity in 2019 there was inherent refinancing risk and future interest rate uncertainty. Achieving the lowest possible debt service was critical to NewBridge.

Sims worked with HSL management to achieve an initial credit rating of BB+ (Stable) from Fitch. This rating, along with HSL’s commitment to NewBridge through the contribution of $6 million toward the debt service reserve fund plus the ability to issue bonds with a 40-year maturity, substantially lowered the annual debt service.

With considerable uncertainty in the tax exempt bond market regarding tax reform and a likely future prohibition on advance refundings, Sims included a five-year call provision in the bond structure, providing maximum flexibility to NewBridge.

Despite distribution restrictions ($100,000 minimum purchase) by the issuer for below-investment-grade rated bonds, $16+ million in bonds were sold to individual investors with  40 institutions purchasing the remaining bonds. Sims’ distribution strength provided lower than anticipated interest rates, from 1.85% (one-year maturity) to 4.125% (40-year maturity).

“The Sims team led a near seamless process for NewBridge’s $236.3 million public bond issuance. Sims’ deep knowledge of the tax exempt market and CCRC business model enabled HSL to obtain a favorable credit rating for NewBridge on a non-recourse basis. They did an excellent job as the book-runner, staging the co-manager to complement its own investor base to achieve a significant over-subscription and lower cost of capital for NewBridge. Sims’ quality of execution exceeded our expectations,” said James Hart, Chief Financial Officer, HSL.

For Financed Right® solutions please contact Andrew Nesi at 203-418-9057 | anesi@hjsims.com. For more information including risks, read the Preliminary Official Statement.

ABOUT HJ SIMS: Founded in 1935 on Wall Street, Sims is a privately held investment bank and wealth management firm with $2.2 billion of assets under management. Sims is one of the country’s oldest underwriters of tax-exempt and taxable bonds, having raised $22 billion for projects throughout the US. The firm is headquartered in Fairfield, CT, with investment banking, private client wealth management and trading offices nation-wide. Pershing LLC, a subsidiary of The Bank of New York Mellon Corporation, is custodian of all client assets. Sims is not affiliated with NewBridge on the Charles or Hebrew Senior Life. www.hjsims.com/ourstory. Investments involve risk, including the possible fluctuation of principal. Member FINRA, SIPC. Follow us on LinkedIn, Facebook and Twitter.

HJ Sims Provides Seed Capital for New University Related Life Plan Community

FOR IMMEDIATE RELEASE

DECEMBER 19, 2018

CONTACT: Tara Perkins, Assistant Vice President | 203-418-9049 | tperkins@hjsims.com

HJ Sims Provides Seed Capital for New University Related Life Plan Community

FAIRFIELD, CT– HJ Sims (Sims), a privately held investment bank and wealth management firm founded in 1935, is pleased to announce the successful $15,000,000 financing in October 2018 for Broadview Senior Living at Purchase College, a Life Plan Community under development in Purchase New York. Broadview will be located on the campus of Purchase College, a public four-year college of visual and performing arts, liberal arts and sciences, founded in 1967 and one of the 13 colleges of the State University of New York (SUNY) system.

Known for its arts programs and home of the Neuberger Museum of Art and The Performing Arts Center, Purchase continually attracts the local community to its campus. In 2003, the President of Purchase assembled a task force to determine how to best fulfill the college’s commitment to lifelong learning. A plan was formulated for the development of a senior residential community to be located on a 40-acre leased parcel of the campus and focused on intergenerational and lifelong learning. Broadview will initially consist of 220 independent living apartments and villas, 18 assisted living beds, 16 memory care beds and amenity space with room for potential expansion in later years. Twenty percent of the units will be set aside for residents earning below 80% of the local median income.

The Purchase College Foundation Housing Corporation provided $5 million to fund initial costs. An estimated $15 million will be required before permanent financing, anticipated to occur within three years. As a community under development with no operating history, financing was a challenge. Sims structured a five-year, $15 million Bond Anticipation Note (BAN) issue to fund the remaining costs. In a BANs issue, interest payments are not paid currently but with proceeds of the permanent financing.

With little collateral and repayment contingent on obtaining permanent financing, these are speculative bonds which limits potential investors. Following close cooperation with management and development teams, Sims secured the required financing commitment with an experienced institutional investment fund. Sims’ Private Client Group sold approximately $4 million to individual investors, despite a $100,000 minimum investment. Sims closed on the $15 million tax-exempt BAN issue with an interest rate 11%. Sims expects to provide up to $325 million for the construction and permanent financing of Broadview.

“The Sims team, especially Andrew Nesi, has been like a partner since we started this venture and guided us along the way. Importantly, they’ve really believed in us and the vision of creating a unique senior learning community at Purchase. We’re grateful for their hard work and professionalism in successfully securing our pre-development funding and looking forward to continuing to work with them through permanent financing,” said Wayne Rush, Vice President and Project Manager, Purchase Senior Learning Corporation.

For Financed Right® solutions, contact: Andrew Nesi at 203-418-9057 | anesi@hjsims.com.

ABOUT HJ SIMS: Founded in 1935 on Wall Street, HJ Sims is a privately held investment bank and wealth management firm with $2.2 billion of assets under management. HJ Sims is known as one of the country’s oldest underwriters of tax-exempt and taxable bonds, having raised $25+ billion for projects throughout the US. The firm is headquartered in Fairfield, Connecticut, with nationwide investment banking, private client wealth management and trading locations. HJ Sims is not affiliated with Purchase College, Broadview or Purchase Senior Living Corporation. Visit www.hjsims.com/ourstory. Investments involve risk, including the possible fluctuation of principal. Member FINRA, SIPC. Follow HJ Sims on Facebook, LinkedIn and Twitter.

HJ Sims Partners with Duncan-Williams to Finance Start-up Construction of The Farms at Bailey Station, an RCA Community

CONTACT: Tara Perkins, Assistant Vice President, Marketing Communications, HJ Sims | 203-418-9049 | tperkins@hjsims.com

Michelle Vincent, Retirement Companies of America | 901-794-2598 | mvincent@retirementcompanies.com

Gary Lendermon, Duncan-Williams, Inc. | 901-260-6847 | glendermon@duncanwilliams.com

 HJ Sims Partners with Duncan-Williams to Finance Start-up Construction of The Farms at Bailey Station, an RCA Community

FAIRFIELD, CT—HJ Sims (Sims) is pleased to announce the completion of a $219,250,000 financing for the new construction of The Farms at Bailey Station (The Farms), a Life Plan Community (LPC), located in Collierville, TN. The Farms is a sister community of Kirby Pines Estates (Kirby), located in Memphis, TN, which was voted Best Retirement Community in Memphis and the Mid-South. The Farms is designed to offer city and country living within a luxurious setting. With customizable homes, a menu of amenities, and the security of covered long-term care, The Farms will offer residents effortless, elegant living. Kirby and The Farms are run by Retirement Communities of America (RCA), a mission-driven organization with a 35+-year legacy of faith-based caring.

Duncan-Williams, Inc. (Duncan) served as co-manager on the financing. Founded in 1969, Duncan is a full-service broker dealer and nationally recognized investment banking firm headquartered in TN. The Farms is 70% pre-sold. Rees Architects and Renaissance Group served as architects; Dalhoff Thomas design studio of Memphis assisted as landscape architect. Linkous served as general contractor.

“The Farms has been a labor of love. RCA assembled a team that worked tirelessly toward a successful closing. The Sims team brought expertise, creativity, commitment and flawless execution with Duncan-Williams, and Greystone Communities. The team took a personal interest, and was sensitive and responsive to the complexities of the project and the desires of our Board Members. They successfully facilitated the financing and delivered a favorable rate structure, while with the Sims and Duncan-Williams team executed placement of the bonds masterfully,” Michelle Trammell-Vincent, Senior Vice President, RCA.

Sims structured a 40-year financing to lower annual debt service (the only 2019 senior living financing with this amortization length). The financing included non-rated, fixed rate bonds and bank purchased draw-down bonds for the independent living apartments, assisted living, memory care and skilled nursing portion of the project. The Community also obtained a bank revolving credit facility for the garden home portion of the community. Involving banks saved the project $6+ million in carried interest. Sims structured a Liquidity Support Agreement and Coverage Support Agreement to enhance credit and security for investors. Sims and Duncan placed the bonds with 20 institutional investors and $17+ million with accredited individual investors.

“We were honored to work with The Farms to provide its complete financing. The LPC will be the most up-to-date in its market and will be a beautifully landscaped campus of garden homes, apartments, assisted living, memory care and skilled nursing,” William Sims, CEO and Managing Principal, Sims.

Chauncey Lever of Foley Lardner LLP, John Stevens of Iberia Bank, Charlie Trammell and Michelle of Retirement Companies of America, David Williams of Butler Snow LLP, Jimmy Rester of HJ Sims, Michael Bradshaw of Butler Snow LLP, and Abe Benavides of McCall, Parkhurst & Horton LLP.

Financed Right® solutions: James Rester at 214-558-7175 or jrester@hjsims.com. 

ABOUT HJ SIMS: Founded in 1935 on Wall Street, HJ Sims is a privately held investment bank and wealth management firm. HJ Sims is known as one of the country’s oldest underwriters of tax-exempt and taxable bonds, having raised $28+ billion for projects throughout the US. The firm is headquartered in Fairfield, CT, with nationwide investment banking, private wealth management and trading locations. Visit www.hjsims.com/ourstory. Investments involve risk, including the possible fluctuation of principal. Past performance is no guarantee of future results. HJ Sims is not affiliated with Duncan-Williams, RCA or The Farms at Bailey Station. Member FINRA, SIPC. Follow HJ Sims: Facebook, LinkedIn, Instagram and Twitter.