HJ Sims Partners with The Bethel Methodist Home to Refinance High Interest Rate Acquisition Bonds

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

HJ Sims Partners with The Bethel Methodist Home to Refinance High Interest Rate Acquisition Bonds

FAIRFIELD, CT– HJ Sims (Sims), a privately held investment bank and wealth management firm founded in 1935, is pleased to announce the successful December 2020 closing of a $30,030,000 financing for The Bethel Methodist Home, d/b/a The Knolls, a non-profit CCRC (Continuing Care Retirement Community) located in Valhalla, NY. The community, which opened in 2002 under the name Westchester Meadows, offers independent living, assisted living and skilled nursing services on one campus.

In 2008, Westchester Meadows experienced financial difficulty, which culminated in a bankruptcy filing in 2015. The community was acquired in 2016 with the proceeds of tax-exempt and taxable bonds privately placed with a single bondholder. Under new management, The Knolls began to thrive. Occupancy levels increased from 57% in 2016 to 91% pre-COVID and management has invested $12 million in renovations. Management contacted Sims to assist in refunding the existing high interest rate debt.

In addition to reducing the interest rate, a portion of the 2016 debt was to mature in 2023 and needed to be restructured. The challenge was to create a level debt service structure that would avoid the 2023 balloon payment while achieving overall savings. Additionally, a non-call provision blocked refunding the debt until 2024. Management and Sims negotiated an early exit, but it required a tight timeline for closing. Sims structured the taxable bond series to mature in 10 years. To lower debt service and create level annual payments, the tax-exempt series does not begin to amortize until the taxable series is retired, and extends 11 years beyond the prior maturity.

The new bonds needed to be issued in December 2020, but redemption could not occur until January 2021. Despite the success of The Knolls, marketing bonds for a recently financially troubled community during COVID-19 posed challenges. Sims’ team specializes in identifying and communicating the underlying strengths of every financing; this expertise was leveraged in marketing and the refunding was completed in 90 days.

On December 23, 2020, Sims closed on the $30.03 million Series 2020 Bonds for The Knolls with 20%+ of the issue purchased by Sims’ Private Wealth Management clients. The yield on the 10-year taxable series was 6.125% and the interest rate on the 35-year tax-exempt series was 4.90%, below the 7.00% yield on the prior debt.

“25 years ago, I worked with Sims and was waiting for the day to do another financing with their superb team of professionals. Finally, that day came, and Andrew Nesi and his team did not disappoint. During COVID-19, with a very small window dictated to us by our current lender and the holiday season upon us, we successfully met all deadlines and refinanced The Knolls through a combination of tax-exempt and taxable bonds, saving close to a $1,000,000 per year in interest and fees. Andrew recognized the strength of this community in the mere four years this campus has been part of Bethel, and now through this refinancing, strengthened our position. I look forward to many future endeavors with HJ Sims” – Beth Goldstein, CEO, The Bethel Methodist Home.

Financed Right® Solutions—Andrew Nesi: 203.418.9057 | anesi@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.

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HJ Sims Provides Financing for Expansion for Jefferson’s Ferry; Completes Forward Delivery Bond Issue for Peconic Landing

FOR IMMEDIATE RELEASE

December 10, 2020

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

HJ Sims Provides Financing for Expansion for Jefferson’s Ferry; Completes Forward Delivery Bond Issue for Peconic Landing

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 November 2020 financing in the amount of $88,975,000 for Jefferson’s Ferry, a CCRC (continued care retirement community) in Brookhaven, NY. In November 2020, Sims also closed a $22.3 million forward delivery bond issue as part of a December 2019 financing for Peconic Landing, a CCRC located in Peconic, NY.

Sims underwrote the initial construction bond financing in 1999 for Jefferson’s Ferry, followed by a refunding of this financing in 2006. For 2020, Jefferson’s Ferry’s Journey Toward Renewal project includes a comprehensive improvement and expansion of the residential and healthcare space. The project incorporates construction of a 20-unit building dedicated to assisted living residents with dementia, construction of 60 additional independent living apartments as extensions to the existing apartment buildings, and numerous improvements to the Community Center to enhance the residents’ lifestyle.

The financing was structured as two series of tax-exempt bonds with the long-term bond series featuring a 35-year final maturity and a 5-year call feature, providing future refunding flexibility. The short-term Entrance Fee Principal Redemption Bonds® (EFPRBs) are expected to be repaid within 3 years from entrance fees paid by new independent living residents. Principal amortization on the long-term bonds is deferred until after the existing debt matures in 2036. The bonds were rated BBB (Stable) by Fitch. The yield on the EFPRB’s was 1.75%, while the long-term bonds maturing in 2055 have a yield of 3.75%.

“We are so pleased to secure bond financing for our Journey Toward Renewal expansion and renovation project. The Sims’ team, led by Andrew Nesi, did an outstanding job of executing the transaction quickly in an uncertain market due to the COVID-19 pandemic and presidential election. Our long-term debt service costs came in under what we had projected and funds secured will provide the capital needs to reposition our community for the future. Job well done,” said Bob Caulfield, President/CEO of Jefferson’s Ferry.

HJ Sims Successfully Completes Forward Delivery Bond Issue for Peconic Landing

As part of a $24.3 million bond issue in December 2019 HJ Sims issued Forward Delivery bonds to secure favorable interest rates and debt service savings for long-standing client Peconic Landing. While Peconic Landing had a series of high interest rate bonds outstanding, tax law precluded a refunding of those bonds until the call date in 2020. Sims structured a series of bonds whereby the interest rate was fixed in 2019, but not “delivered” or closed until eleven months later.

Peconic Landing was one of the first CCRCs in the country to experience COVID-19. Sims worked with management on a robust disclosure plan to keep investors apprised of developments. The management team was at the forefront of implementing strict protocols to minimize the impact of the virus on residents and the organization benefitted from strong capital reserves and government assistance programs to weather the challenges.

Financed Right® Solutions—Andrew Nesi: 203.418.9057 |  anesi@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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Giving Tuesday

Join the Movement– It’s GivingTuesday, the global day of giving. Please consider contributing to HJ Sims’ Corporate Social Responsibility partner, Gift of Life, to help find stem cell donors like Sterling who flew 5,000 miles mid-pandemic to save the life of someone she never met! Help Gift of Life reach their goal. Thank you.

HJ Sims Successfully Underwrites Pavilion Project and Refinancing for John Knox Village in Pompano Beach

FOR IMMEDIATE RELEASE             

November 23, 2020

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

HJ Sims Successfully Underwrites Pavilion Project and Refinancing for John Knox Village in Pompano Beach

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 an October 2020 refinancing and capital projects financing in the amount of $77,605,000 for John Knox Village (JKV), a life plan community for age- and income-qualified residents in Pompano Beach, FL.

JKV sought assistance in restructuring its capital stack while issuing additional debt to develop amenity spaces to serve existing and attract new residents to the potential Westlake Tower expansion. JKV was seeking financing options for a new community pavilion, including dining facilities and related amenities, a new lake, various parking spaces and a new central energy plant (Pavilion Project). Sims was ultimately engaged by JKV as the COVID-19 pandemic was declared.

Sims provided multiple financing scenarios to analyze considering the volatility of the bond market and bank lending environment, which ultimately led to the selection of long-term fixed rate bonds for the 2020 financing. Working alongside JKV’s board, management and financial advisor, Sims prepared JKV for the Fitch-review process as they sought a material increase in their debt, ultimately retaining their Fitch A- credit rating with a negative outlook.

Sims priced the JKV Series 2020 Bonds during a week of near record volume, surpassing expectations and executing on a majority 4.000% or lower coupon structure to minimize the debt service burden. Sims also worked alongside JKV and its legal counsel to modernize certain aspects of JKV’s existing master trust indenture, providing additional flexibility for JKV in anticipation of the potential Westlake Tower expansion. The final pricing increased maximum annual debt service by just over $2.5 million for over $58 million in new long-term debt. The Series 2020 Bond issuance, as underwritten by Sims, is expected to provide a stable platform upon which JKV may continue to grow as it nears its fifth decade of service.

“Modernizing a Life Plan Community is a stressful endeavor on its own. Adding the stress of financial markets, budgets, forecasting and legal documents can be overwhelming for governance, management and residents. A good financing team is the key to wading through these waters. HJ Sims built a strong financing team, and broke down a complicated process into easily understood digestible parts. The results left this Community the ability to afford the facility, which will position John Knox Village as continued market leaders of senior lifestyle for generations. Working with Aaron and Melissa has been a pleasure; they are part of my team and I expect to continue to use their counsel in the future. I would recommend this firm highly,” said Bruce Chittenden, CFO, JKV.

Financed Right® Solutions—Aaron Rulnick: 301-424-9135, arulnick@hjsims.com |

Melissa Messina: 203.418.9014, mmessina@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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Difficulty Accessing NetXInvestor®

Dear Valued Client,

We have been notified by BNY Mellon Pershing, HJ Sims’ clearing agent, that as a result of a recent change to their technology platform, you may experience trouble accessing your HJ Sims account on NetXInvestor®. 

To ensure access to your account, please update your internet browser bookmark or shortcut to NetXInvestor with the following link www.netxinvestor.com

Accessing NetXInvestor via an internet search may also prove difficult. BNY Mellon Pershing is working to resolve this issue. In the interim, please manually enter www.netxinvestor.com to access the site and your HJ Sims account. 

We apologize for any inconvenience this may cause. 

Sincerely,
HJ Sims

HJ Sims Completes Third Financing for Client, Refinances Outstanding Debt, Generates Significant Interest Rate Savings

FOR IMMEDIATE RELEASE             

October 29, 2020

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

HJ Sims Completes Third Financing for Client, Refinances Outstanding Debt, Generates Significant Interest Rate 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 September 2020 financing in the amount of $77,000,000 for Casa de las Campanas (Casa), a Life Plan Community in San Diego, CA. Casa is managed by Life Care Services, and LCS Development serves as the developer.

Casa has worked with Sims to secure financing for its multi-phased Master Plan, which included renovation and expansion of its facilities, including new skilled nursing facilities, independent living apartments and memory care beds.

In 2014, Sims secured bank financing through City National Bank (CNB) for Casa’s Phase I. Sims negotiated the Phase II financing terms with CNB in 2017. Structuring the financing with CNB and Cal Mortgage, Sims worked to secure $39 million in direct bank placement bonds from CNB for Casa’s Phase II expansion. Casa applied $7.1 million of equity and transferred $5.5 million of unused Phase I proceeds towards Phase II. Sims and Casa then explored refinancing options for the outstanding Series 2010 bonds and its outstanding bank debt to reduce Casa’s overall cost of capital. 

In 2017, the passage of the Tax Cuts and Jobs Act eliminated the ability for Casa to advance refund its outstanding Series 2010 bonds. Sims and CNB considered pricing a forward starting tax-exempt refinancing, helping Casa to lock in an interest rate to refinance its outstanding Series 2010 bonds, 2014 Bank Debt, the outstanding portion of the 2017 bonds and fund the remaining undrawn portion of the 2017 bonds. COVID-19 roiled markets and bank financing, therefore the financing plan evolved from a forward refunding to a current refunding, which was optimized at a $77 million credit commitment offered by CNB, realizing significant cash flow savings.

With the closing of the refinancing, Casa refinanced outstanding legacy debt, as well as debt related to their phased expansion. Casa anticipates annual cash flow savings on existing debt of $2.45 million through 2035, with net present value savings of $12 million and 18.3% of refunded debt over the 30-year amortization.

“Once again, working with the Sims’ team provided the best solution to meet our refinancing objectives. Sims continues to be our trusted financial advisor, helping us evaluate opportunities to improve upon our current debt structure while ensuring Casa is well-positioned to access future financings related to our Master Plan. Sims provided valuable insight and guidance on the refinancing scenarios to our Management Team and Board. The refinancing was successfully structured to eliminate the previously required Cal Mortgage insurance and related debt service reserve fund. With the new low interest rate, Casa is able to save millions and drastically improve our cash flow and future debt capacity. Sims went beyond the call of duty, and presented industry guidelines and insights at our Board Retreats to ensure we accomplish our goals and maintain our mission,” said Dave Johnson, CFO, Casa de las Campanas.

Financed Right® Solutions—Aaron Rulnick: 301-424-9135, arulnick@hjsims.com |

Brady Johnson: 949-558-8297, bjohnson@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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Taxable Fixed-rate Advance Refunding and Tax-exempt Expansion Funding Allows for Streamlined Capital Structure and Continued Low-cost Growth

FOR IMMEDIATE RELEASE             

October 22, 2020

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

Taxable Fixed-rate Advance Refunding and Tax-exempt Expansion Funding Allows for Streamlined Capital Structure and Continued Low-cost Growth

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 $107,360,000 for Presbyterian Retirement Communities (PRC) d/b/a Westminster Communities of Florida, and its affiliates, which is comprised of ten life plan communities located throughout Florida.

With a history of successfully acquiring and turning around financially strained communities, PRC acquired Westminster St. Augustine (f/k/a Glenmoor) out of bankruptcy in October 2017. Under PRC’s leadership, Westminster St. Augustine achieved a successful rebound on an accelerated basis, and PRC sought options to release PRC from its support obligations, as well as to refinance its 2010B variable rate bonds and fund forthcoming capital projects.

Sims structured long-term taxable and tax-exempt bonds around the existing debt service, achieving a blended True Interest Cost of 3.87% and successfully underwriting the bonds without a funded Debt Service Reserve Fund. Sims also helped to eliminate interest-rate risk and LIBOR exposure, streamline PRC’s debt and organizational structure, and maintain an “A-” Fitch Rating.

By borrowing $50 million for forthcoming expansion projects at near historically low fixed interest rates, PRC is well-positioned for continued growth among its existing campuses. The ability to fund growth with low-cost debt, instead of cash, will enable PRC to strengthen its liquidity position in the months ahead, which is especially paramount in the recent COVID environment.

“Working with the Sims’ team on this bond issuance enabled us to achieve numerous financing objectives with ease. The low cost of capital far exceeded our expectations, while the unique and tailored structure enhances the stability and flexibility of our overall debt profile,” said Hank Keith, Chief Financial Officer, PRC.

Financed Right® Solutions—Melissa Messina: 203-418-9015, mmessina@hjsims.com | Kerry Moynihan: 407-313-1702, kmoynihan@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 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, TwitterInstagram.

HJ Sims Underwrites $135 Million Expansion for Phase II of the Toby and Leon Cooperman Sinai Residences of Boca Raton

FOR IMMEDIATE RELEASE             

October 5, 2020

 

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

 

HJ Sims Underwrites $135 Million Expansion for Phase II of the Toby and Leon Cooperman Sinai Residences of Boca Raton

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 $135 million for the Toby and Leon Cooperman Sinai Residences of Boca Raton (Sinai). Located in Boca Raton, Sinai is a life plan community managed by Life Care Services comprised of 234 independent living units, 48 assisted living units, 24 memory-support units, 60 skilled nursing beds and common amenities. Sinai opened in January 2016 and achieved stabilized occupancy in less than a year. Sinai is located on The Jewish Federation of South Palm Beach County Florida campus.

 

The Sinai Board determined to undergo an expansion to add 111 independent living units to the community. Sinai and its development partner, LCS-D, had commenced pre-development work to shorten its post-financing construction period and were driving towards a September 15 vertical construction start, amidst COVID-19. Sinai experienced strong pre-sale velocity despite the pandemic, and achieved 70% pre-sales during the bond marketing process.

 

Due to the accelerated post-financing construction period, and Sinai’s track record of rapidly filling independent living units, coupled with COVID-19 impacted constraints on bank financing, Sims and the Sinai team issued tax-exempt fixed rate bonds for the entire expansion. Sinai financed a portion of its development costs with taxable bonds, creating a $5 million taxable tranche of Entrance Fee Principal Redemption Bonds®.

 

Sims underwrote Entrance Fee Principal Redemption Bonds® up to approximately 91% of the initial entrance-fee pool of the expansion. The Series 2020 Bonds were robustly oversubscribed, permitting adjustment of the scale on the pricing date such that the long-term bonds (2055 maturity) were priced at 5.00% to yield 4.60%, permitting Sinai to borrow approximately $135 million with only a $2.4 million increase in maximum annual debt service over their existing maximum annual debt service. Sims facilitated the implementation of modifications to Sinai’s existing master trust indenture – providing greater flexibility on testing of debt service coverage (switching to annual versus quarterly testing) to accommodate intra-year swings in entrance fee turnover.

 

“Once again, HJ Sims has provided their exceptional professional expertise providing pre-development and construction development financing, in the amount of $135 million, for the Phase II Expansion of the Toby & Leon Cooperman Sinai Residences of Boca Raton. Sims was the underwriter in 2014 for the $214 million bond issuance for the Sinai Residences initial start-up and development financing. Sinai Residences is now one of the most successful premiere luxury senior living facilities in the country.

The Sims’ team’s preparedness, availability, scheduling, communication, personal touch and extensive knowledge of the bond industry and markets allowed the Sinai Expansion project to be funded on-time and at exceptional rates. An owner could not ask for better representation. I look forward to the continuation of our outstanding relationship, and future funding opportunities, with Sims,” said Mel Lowell, COO, Jewish Federation of South Palm Beach County, and Board Member, Sinai.

Financed Right® Solutions—Aaron Rulnick: arulnick@hjsims.com, 301-424-9135 | Melissa Messina: 203-418-9015,  mmessina@hjsims.com | Brady Richardson 443-340-9980,  brichardson@hjsims.com | Patrick Mallen: 418-9009,  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, TwitterInstagram.

 

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