An Exclusive Investment Opportunity: Searstone 2021

Searstone Logo

**This financing has been successfully closed. Please contact you advisor for any potential secondary market opportunities.**

Searstone Logo

$263,630,000*
PUBLIC FINANCE AUTHORITY

Revenue and Refunding Bonds
Searstone CCRC Project

Series 2021A Revenue Bonds $104,850,000*
Series 2021B-1 Entrance Fee Principal Redemption Bonds $36,310,000*
Series 2021B-2 Entrance Fee Principal Redemption Bonds $32,240,000*
Series 2021C Taxable Entrance Fee Principal Redemption Bonds $5,315,000*
Series 2022A Forward Delivery Revenue Bonds $8,920,000*
Series 2023A Forward Delivery Revenue Bonds $75,995,000*

HJ Sims is pleased to serve as sole underwriter for Samaritan Housing Foundation, Inc., d/b/a Searstone Retirement Community, a life plan community located in Cary, North Carolina. The Community presently consists of 169 one- and two-bedroom independent living units, including 131 apartment-style, and 38 homes. Amenities are centralized in their “Clubhouse”, and include dining venues, indoor swimming pool, fitness and exercise area, spa/salon, game room, multi-purpose ballroom, and an art studio. Searstone also has gardens, walking trails and an approximately 16-acre lake.

Searstone’s healthcare services are delivered in Brittany Place, a standalone building on campus. Following a recent expansion financing completed in 2018 by HJ Sims, there are 14 assisted living units and 25 skilled nursing units. Pursuant to North Carolina Certificate of Need regulations, only residents from independent living may transfer to these areas, no direct admissions to healthcare are allowed.

The Highview at Searstone project will include 152 one- and two-bedroom independent living units, all under one roof. A new core of common amenities will be included in this building, which includes multiple dining venues, a large multipurpose room, and various gathering spaces for residents. In addition, the project includes substantial update to outdoor spaces throughout the community. To accommodate the significant increase in residents, Brittany Place is also being expanded as part of the project. In total, 53 new healthcare units are being constructed, including 14 specialized memory care units, a service line that Searstone does not currently offer. In addition to the memory care, the scope includes 15 assisted living and 24 skilled nursing units.

HJ Sims has been working with Searstone since 2012, before they opened in late 2013 financing the start-up. Now, Searstone is ready to start their important expansion project called “The Highview at Searstone” to accommodate growing market demand in the community. To learn more about the history of the Searstone financings with HJ Sims, please read about the previous case studies in their entirety:

About the Bonds

  • Series 2021A
    • $104,850,000*
    • Revenue Bonds
    • Bonds are exempt from Federal Income Tax
    • Minimum denominations of $25,000; accredited investors and QIBs only
    • Interest will be payable on June 1 and December 1 of each year, commencing June 1, 2022
    • First principal payment: June 1, 2027
  • Series 2021B-1
    • $36,310,000*
    • Entrance Fee Principal Redemption Bonds
    • Bonds are exempt from Federal Income Tax
    • Minimum denominations of $25,000; accredited investors and QIBs only
    • Interest will be payable on June 1 and December 1 of each year, commencing June 1, 2022
    • First principal payment: January 1, 2025
  • Series 2021B-2
    • $32,240,000*
    • Entrance Fee Principal Redemption Bonds
    • Bonds are exempt from Federal Income Tax
    • Minimum denominations of $25,000; accredited investors and QIBs only
    • Interest will be payable on June 1 and December 1 of each year, commencing June 1, 2022
    • First principal payment: July 1, 2024
  • Series 2021C
    • $5,315,000*
    • Entrance Fee Principal Redemption Bonds
    • Taxable Bonds
    • Minimum denominations of $25,000; accredited investors and QIBs only
    • Interest will be payable on June 1 and December 1 of each year, commencing June 1, 2022
    • First principal payment: July 1, 2024
  • Series 2022A
    • $8,920,000*
    • Refunding Revenue Bonds
    • Delivery of bonds on or about March 3, 2022
    • Forward delivery Bonds are exempt from Federal Income Tax
    • Minimum denominations of $25,000; accredited investors only
    • Interest will be payable on June 1 and December 1 of each year, commencing June 1, 2022
    • First principal payment: June 1, 2023
  • Series 2023A
    • $75,995,000*
    • Refunding Revenue Bonds
    • Delivery of bonds on or about March 3, 2023
    • Forward delivery Bonds are exempt from Federal Income Tax
    • Minimum denominations of $25,000; accredited investors only
    • Interest will be payable on June 1 and December 1 of each year, commencing June 1, 2023
    • First principal payment: June 1, 2024

Use of Bond Proceeds

Project

  • Financing capital expenditures, including
    • Costs relating to the expansion of the continuing care retirement community known as Searstone, specifically, an independent living and healthcare expansion project, The Highview at Searstone
    • The modification, improvement, or enhancement of certain infrastructure serving the Searstone Community 
  • Refunding the Series 2020A (Tax-Exempt) and Series 2020B (Taxable) Revenue Bonds 
  • Funding capitalized interest on the Series 2021 Bonds
  • Funding a portion of the Parity Debt Service Reserve Fund
  • Funding the 2021B-C Debt Service Reserve Fund
  • Paying a portion of the costs of issuing the Series 2021 Bonds
  • The Series 2022A Bonds will refund the outstanding Series 2016 Bonds
  • The Series 2023A Bonds will refund the outstanding Series 2017 Bonds

Security

  • Secured by interest in improvements to be constructed and assets of the Corporation,
  • Secured by a gross revenue pledge,
  • Secured by debt service reserve funds,
  • Secured by assignment of all marketing, development, management and construction contracts.

 Key Financial Covenants

  • 1.10x Debt Service Coverage Ratio; tested annually through 2027 and 1.20x Debt Service Coverage Ratio; tested annually from 2028 thereafter
  • 150 Days Cash on Hand/Liquidity Covenant; tested semi-annually
  • Marketing Covenant tested quarterly beginning with 78% at 12/31/21 rising to 90% by 6/30/24 or approximately 12 months after opening
  • Occupancy Covenant tested quarterly beginning one full quarter after opening or rising to 90% in 4 years
  • Cumulative Cash Operating Loss Covenant: testing to begin the full fiscal quarter following the issuance of the Certificate of Occupancy and ends the first full fiscal quarter following stabilization. 

We are currently accepting indications of interest for these tax-exempt bonds with an expected pricing the week of October 18, 2021, and anticipated settlement during the week of November 15, 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.

LEARN MORE
888.841.3871

*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 Searstone Retirement Community.

An Exclusive Investment Opportunity: Broadview at Purchase College

Broadview at Purchase College Logo

**This financing has been successfully closed. Please contact you advisor for any potential secondary market opportunities.**

Broadview at Purchase College Logo

$392,245,000*
WESTCHESTER COUNTY LOCAL DEVELOPMENT CORPORATION

Revenue Bonds
Purchase Senior Learning Community, Inc. Project
Series 2021

Series 2021A Bonds $213,805,000*
Series 2021B Entrance Fee Principal Redemption Bonds $23,520,000*
Series 2021C Entrance Fee Principal Redemption Bonds $58,730,000*
Series 2021D Entrance Fee Principal Redemption Bonds $89,525,000*
Series 2021E Taxable Entrance Fee Principal Redemption Bonds $6,665,000*

HJ Sims is pleased to serve as sole underwriter for Broadview at Purchase College, a planned senior living community consisting of 174 independent living apartments  and 46 villas, 36 assisted living beds and 32 memory care beds on the campus of Purchase College in Purchase, Westchester County, New York.

Purchase College is approximately five miles from White Plains, NY and 25 miles from midtown Manhattan. It was founded in 1967 and one of the 13 comprehensive colleges of the State of New York (SUNY) system.

In 2011 legislation was passed in New York to permit SUNY to enter into a 75-year ground lease for development of Broadview, finding “provision of a senior learning community upon the grounds…is appropriate to further the objectives and purposes of [SUNY].” The legislation mandates that 100% of any rent Purchase College receives from the lease shall be used by the college for student financial aid and full-time teaching positions.

In addition to a wide variety of amenities and commons spaces, the community will include a Learning Commons consisting of classrooms, studios, a dining venue, gathering spaces, and performance spaces for use by Broadview residents and the College community and will be a place where residents, students and faculty can come together for lectures, seminars, performances, mentoring, tutoring and other educational purposes. Arts and cultural opportunities on the Purchase College campus also include the Neuberger Museum of Art, the Richard and Dolly Maass Gallery, and the Performing Arts Center, all a short walk from the Community.

Learning Commons Entrance Rendering; subject to change

Reach out and connect with Broadview.

This stunning new community will mix a vibrant college environment with senior living premium services and amenities. There will be unique opportunities for intergenerational learning & mentoring.

Broadview residents will become part of a senior living community embedded on the Purchase College campus. The Purchase College tagline ‘Think Wide Open’ will be the guiding principle for Broadview, offering opportunities to cross borders between generations, break down stereotypes and form mutually beneficial and lasting friendships.

Broadview will feature the Learning Commons (pictured above) which will be the fulcrum where students of all ages converge. Classrooms, galleries, studios, a coffeehouse and more will be housed within its expansive premises as Broadview’s hub. Meet, dine, take courses and attend lectures — each day here will present an open invitation to mingle with other residents, students and faculty in life-expanding relationships.

Market response to the new community has been strong with 83% of the independent living units reserved as of September 30, 2021.

In 2014 HJ Sims was selected as investment banker and has been actively involved in the development of the community and structuring this financing throughout the past seven years. In 2018 we raised $15 million in Bond Anticipation Notes for the initial development costs which supplemented a $5 million grant received by the Purchase College Foundation Housing Corporation. For more information about the 2018 financing, please read the full case study.

About the Bonds

  • Series 2021A Bonds $213,805,000*
    • Interest is exempt from Federal Income Tax, State of New York Income Tax and New York City Income Tax
    • Minimum investment of $100,000 with $5,000 increments thereafter Qualified Institutional Buyers and accredited investors only
    • Interest will be payable on January 1 and July 1 of each year, commencing July 1, 2022
    • First principal payment: July 1, 2027
    • Final maturity: July 1, 2056 (multiple maturities offered)

  • Series 2021B Entrance Fee Principal Redemption Bonds $23,520,000*
    • Interest is exempt from Federal Income Tax, State of New York Income Tax and New York City Income Tax
    • Minimum investment of $100,000 with $5,000 increments thereafter Qualified Institutional Buyers and accredited investors only
    • Interest will be payable on January 1 and July 1 of each year, commencing July 1, 2022
    • Sized to 85% of Entrance Fee pool
    • Anticipated to be redeemed July 1, 2025

  • Series 2021C Entrance Fee Principal Redemption Bonds $58,730,000*
    • Interest is exempt from Federal Income Tax, State of New York Income Tax and New York City Income Tax
    • Minimum investment of $100,000 with $5,000 increments thereafter Qualified Institutional Buyers and accredited investors only
    • Interest will be payable on January 1 and July 1 of each year, commencing July 1, 2022
    • Sized to 75% of Entrance Fee pool
    • Anticipated to be redeemed July 1, 2025

  • Series 2021D Entrance Fee Principal Redemption Bonds $89,525,000*
    • Interest is exempt from Federal Income Tax, State of New York Income Tax and New York City Income Tax
    • Minimum investment of $100,000 with $5,000 increments thereafter Qualified Institutional Buyers and accredited investors only
    • Interest will be payable on January 1 and July 1 of each year, commencing July 1, 2022
    • Sized to 50% of Entrance Fee pool
    • Anticipated to be redeemed July 1, 2024

  • Series 2021E Taxable Entrance Fee Principal Redemption Bonds $6,665,000*
    • Interest is NOT exempt from Federal Income Tax, State of New York Income Tax and New York City Income Tax
    • Minimum investment of $100,000 with $5,000 increments thereafter Qualified Institutional Buyers and accredited investors only
    • Interest will be payable on January 1 and July 1 of each year, commencing July 1, 2022
    • Sized to 12% of Entrance Fee pool
    • Anticipated to be redeemed October 1, 2023

Use of Bond Proceeds

Project

  • Construction of the community
  • Working Capital to fund pre-opening and opening expenses
  • Debt Service Reserve Funds
  • Capitalized Interest during construction
  • Financing costs

Security

  • Secured by a sub-leasehold mortgage on the property
  • Secured by a gross revenue pledge
  • Secured by debt service reserve funds
  • Secured by an assignment of project documents
  • Secured by a $10 million liquidity support fund

 Key Financial Covenants

  • 1.20x Debt Service Coverage Ratio; tested annually following stabilization
  • 175 Days Cash on Hand/Liquidity Covenant; tested semi-annually following stabilization
  • Marketing Covenant requiring quarterly step ups beginning with 78% at 12/31/21 rising to 90% by 6/30/24 or approximately 12 months after opening
  • Occupancy Covenant requiring quarterly step ups beginning one full quarter after opening and rising to 90% in 4 years
  • Cumulative Cash Loss Covenant: testing to begin the full fiscal quarter following the issuance of the Certificate of Occupancy and ending the first full fiscal quarter following stabilization. 

We are currently accepting indications of interest for these tax-exempt bonds with an expected pricing the week of October 25, 2021, and anticipated settlement during early November. 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.

LEARN MORE
888.818.1371

*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 Purchase Senior Learning Community, Inc.

U.S. House Ways and Means Committee Proposes Restoring Tax-exempt Advance Refundings

The House Ways and Means Committee introduced the tax proposal connected with the $3.5 trillion budget reconciliation bill, the Build Back Better Act. The tax proposals included therein would restore tax-exempt advance refundings, which have been unavailable to governmental and 501(c)(3) as a means of reducing the cost of capital since the passage of the Tax Cuts and Jobs Act of 2017.

Continue reading

Autism, IDD Nonprofit Elwyn Secures $45M Refinancing Package

HJ Sims is pleased to have helped make the refinancing possible. It conducted a comprehensive bank solicitation seeking a $45 million taxable credit facility, comprising 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.

Read more in Behavioral Health Business.

An Investment Opportunity: Landis Homes

Landis Homes Logo
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.

LEARN MORE
888.588.7559

*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

Asbury Communities Partners Again with HJ Sims to Achieve Savings

FOR IMMEDIATE RELEASE       

CONTACT: Tara Perkins, AVP | 203-418-9049 | [email protected]

Asbury Communities Partners Again with HJ Sims to Achieve Savings  

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 financing for $47,615,000 for Asbury Communities, Inc. (Asbury), which owns/operates life plan communities in PA, MD, and TN, HUD Section 202 senior housing, a foundation and a technology consulting firm. The facilities included in its PA and MD Obligated Groups are owned/operated by Asbury Atlantic, Inc., a wholly-owned subsidiary of Asbury.

Asbury’s PA Obligated Group (PA Obligated Group) is comprised of two life plan communities – Bethany Village Retirement Center (Bethany) in Mechanicsburg, PA, and Springhill in Erie, PA. Bethany includes two campuses with 400 independent and 100 assisted living units, and a 69-bed skilled nursing center and amenities. Springhill has 158 independent living and 35 personal care units, and an 80-bed skilled nursing facility.

Sims served as underwriter for several Asbury transactions, including a $59.5 million financing in 2019 and a 2020 refinancing. The objectives were to maximize debt service savings while minimizing/eliminating renewal risk associated with traditional commercial bank financings. Sims recommended a hybrid finance plan with benefits of a traditional bank loan and a fixed rate bond issuance. 

The refinancing of the Series 2012 Bonds consisted of a bank loan in the amount of $20,380,000 and tax-exempt fixed-rate bonds in the amount of $27,235,000. The bank loan utilized the Cinderella Bond structure, with initial issuance on a taxable basis until eligible for conversion to a tax-exempt rate in October 2021. The favorable cost of capital and the loan fully amortizing over a 12-year term eliminates need to refinance the debt. A forward starting interest rate swap was arranged, set to initiate upon conversion to a tax-exempt interest rate, resulting in a synthetically fixed rate for the bank loan. 

A forward commitment for the fixed-rate bond portion refinanced the remainder of Series 2012 Bonds with principal amortization beginning following maturity of the bank loan. The structure leveraged a favorable interest rate to lock-in pricing. Asbury sought to maintain savings as rates continued to rise targeting at least 10% savings. The taxable loan will be refinanced by a tax-exempt bank loan and the tax-exempt bonds will be delivered October 4, 2021. The loan and Series 2021 Bonds maintained level debt service for the PA Obligated Group for the remaining life of the bonds, providing savings of 11.73%.

For the PA Obligated Group, the aggregate $47,615,000 Series 2021 Bonds are projected to generate $400,000+ of annual debt service savings through 2041 and net present value (NPV) savings of $5.5 million. Inclusion of the bank improved Asbury’s savings relative to a fixed rate forward refunding structure for the full refinancing by providing approximately 20% of the total NPV savings, lowering cost of capital and interest expense while maintaining certainty of future debt service for the life of the bonds.

“Once again, Sims helped Asbury navigate through a complicated transaction, which lowered interest costs while maintaining existing covenants and all other material debt terms,” said Andrew Jeanneret, CFO, Asbury.

Financed Right®: Aaron Rulnick: 203.418.9008 | [email protected]  or Melissa Messina: 203.418.9015 | [email protected].

 

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.

 

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An Investment Opportunity: LifeSpire of Virginia

Lifespire of Virginia Logo
Lifespire of Virginia logo

$83,715,000*
VIRGINIA SMALL BUSINESS FINANCING AUTHORITY

Residential Care Facilities Revenue and Refunding Bonds
LifeSpire of Virginia
SERIES 2021

HJ Sims is pleased to serve as senior underwriter for tax-exempt Series 2021 revenue and refunding bonds on behalf of LifeSpire of Virginia, a not-for-profit organization currently comprised of four senior living properties and a foundation committed to supporting its communities through fundraising.

Virginia Baptist Homes, Inc. d.b.a. LifeSpire of Virginia and its Obligated Group currently operate four Life Plan Communities in Virginia with a total of 763 independent living units, 203 assisted living units, 82 memory care units and 227 skilled nursing units. These communities include:

  • The Culpeper—Culpeper, Virginia
  • Lakewood—Richmond, Virginia
  • The Chesapeake—Newport News, Virginia
  • The Glebe—Daleville, Virginia

While each LifeSpire community features a unique setting and benefits, all share a single mission of empowering individuals with choices in purposeful living and a value system that reflects the ideals of faith, servant-leadership, stewardship, peace of mind, innovation and joy.

About the Bonds

  • Series 2021
    • $83,715,000*
    • Fitch Rated “BBB” Stable Outlook
    • Bonds are exempt from Federal Income Tax and exempt from State of Virginia Income Tax
    • Denominations of $5,000
    • Interest will be payable on June 1 and December 1 of each year, commencing December 1, 2021
    • First principal payment: December 1, 2021

Project

  • Acquire The Summit CCRC (IL/AL only), located in Lynchburg, Virginia
  • Refund outstanding bank debt
  • Develop additional independent living cottages at Lakewood and The Culpeper communities

Security

  • Secured by gross revenues and mortgage
  • Proposed Series 2021 Bonds will be secured on a parity basis with existing indebtedness and the 2021 Taxable Loan

 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 August 2, 2021, and anticipated settlement during the week of August 16, 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.

LEARN MORE
888.978.1754

*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 Virginia Baptist Homes, Inc.