HJ Sims Assists Landis Homes in Securing Bank Financing for a New Independent Living Campus in Downtown Lancaster and Refinancing of Variable Rate Bank Debt with Fixed-Rate Bond Debt

FOR IMMEDIATE RELEASE

CONTACT: Shauna Reilly, CMO | 203-418-9043 | sreilly@hjsims.com

HJ Sims Assists Landis Homes in Securing Bank Financing for a New Independent Living Campus in Downtown Lancaster and Refinancing of Variable Rate Bank Debt with Fixed-Rate Bond Debt

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 August/September 2021 financing in the amount of $25 million for Landis Place on King (LPK) and $53 million for Landis Homes Retirement Community (LHRC), which operates a Continuing Care Retirement Community in Lititz, PA. Landis is a wholly-owned subsidiary of Landis Communities (Landis) that operates a home and community services subsidiary, Landis HCBS, and a middle-market housing subsidiary, Landis Quality Living.  As of 2021, LHRC serves 850 residents on its campus with residential living (cottages, apartments, hybrid homes, and suites), personal care, skilled nursing, and memory support services.

Landis approached Sims in the spring of 2021 for help with securing financing for two separate transactions.  The first was to build LPK, a mixed-use development, which will bring 79 middle- and low-income senior housing units to downtown Lancaster, PA. The second was the permanent refinancing of three outstanding variable rate bank loans that provided capital for renovations.

Sims evaluated financing alternatives for LPK, determining that the lower costs associated with bank financing were the most attractive. Sims coordinated a robust bank solicitation process, selecting Orrstown Bank, which provided $25 million in draw-down capital financing, along with an attractive fixed rate for the first 10 years of their 15-year commitment.

Sims provided bond underwriting in connection with the refinancing of $48 million of LHRC’s Series 2015B, 2015C and 2017A bank loans, and provided $5 million in capital for campus renovations. The Series 2021 Bonds were structured as parity obligations with LHRC’s existing Series 2015A Bonds and the LPK bank debt provided by Orrstown Bank

Both financings are secured by a Pledge of Gross Revenues, First Mortgage positions on LHRC and LPK, and the Series 2021 Bonds are secured by a Debt Service Reserve Fund. The LPK Bank Financing provides 15-years of funding, with an underlying 30-year amortization and a fixed-rate of 2.35% for 10 years. The Series 2021 Bonds were structured as 35-year bonds, bearing a 5-year premium redemption option and amortized to wrap around LHRC’s existing Series 2015A bonds, providing level debt service. 

The financing team closed the LPK bank financing prior to the expiration of the Bank’s natural fixed-rate commitment, followed by the closing of the $53,385,000 Series 2021 Bonds. The bonds oversubscribed, allowing for lower interest rates to LHRC’s benefit.

Closing on August 18 and September 29, 2021, the $25 million LPK and the $53 million LHRC financings provide Landis with competitive cost of financing and support for future growth.

“Sims was an excellent partner for Landis during our recent financing transactions. Having one financing transaction moving forward at a time is difficult enough; we had two separate financings moving on parallel tracks. The Sims team was prepared, organized, and gave what was needed for success. They negotiated hard, executed due diligence, and structured the financings to meet our individualized needs. We’re grateful to have Sims as our partner,” Corey Hamilton, CFO, Landis.

Financed Right®: Lynn Daly: 312.505.5688 | ldaly@hjsims.com , Jim Bodine: 267.360.6245 | jbodine@hjsims.com, Siamac Afshar: 267.360.6250 | safshar@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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LifeSpire Partners with HJ Sims to Pursue, Finance Important Acquisition

FOR IMMEDIATE RELEASE

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

LifeSpire Partners with HJ Sims to Pursue, Finance Important Acquisition

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 August 2021 financing in the amount of $93,369,000 for LifeSpire of Virginia (“LifeSpire”). LifeSpire currently owns and operates four life plan communities in Virginia, consisting of The Chesapeake, The Culpeper, The Glebe, and Lakewood, all providing a full continuum of care. The financing provided funds for the acquisition of LifeSpire’s fifth community, for capital projects Lakewood and The Culpeper, and to refinance existing bank held debt with permanent bond debt.

Sims was engaged in 2021 to provide advisory services as LifeSpire pursued the acquisition of The Summit, a not-for-profit Life Plan Community in Lynchburg, Virginia owned by Centra Health System.  The Summit is a stabilized community in a complementary market to LifeSpire’s existing portfolio. After guiding LifeSpire through the valuation and competitive bid process, LifeSpire was selected to purchase the Independent and Assisted Living components of The Summit, and was also successful in obtaining adjacent developable land for future growth of the campus.

A plan of finance was explored for the acquisition with the following objectives: 1) provide sufficient funds to purchase The Summit, 2) maximize LifeSpire’s flexibility within its capital structure for future growth, and 3) minimize the cost of capital.

Sims recommended a finance plan that included reimbursement with tax-exempt bond proceeds of prior capital expenditures initially paid for in cash. The strategy minimized the amount of taxable debt needed to complete the acquisition. Further, the taxable debt incurred was structured as short-term debt which brought a variety of benefits, allowing for the taxable debt used for The Summit purchase to be repaid as new cottages are occupied, and removing any refinancing risk inherent with bank debt, while also managing Lifespire’s cash position through construction. The final purchase price of $30.25 million represents a substantial discount to the independent appraised value of $45+ million.  LifeSpire also maintained its existing “BBB” rating despite the risks associated with an acquisition.

In addition, Sims identified the opportunity for debt service savings on Lifespire’s existing bank debt which carried high rates relative to the current market, more restrictive covenants, and terms expiring in six years. The 2017A and 2017B bank-purchased bonds were refinanced with fixed rate bonds, eliminating put risk, maximizing flexibility, and reducing debt service.

The intentional shift to a capital structure with all long term bonds provides LifeSpire with a covenant package with no deviations from their Master Trust Indenture, maximizing strategic flexibility. With the refinancing of the Series 2017A and Series 2017B Bonds, LifeSpire holds no long-term bank debt, anticipating future deployment of the organization’s bank debt capacity for reinvestment into existing communities as well as in pursuit of strategic growth.

Sims achieved pricing for the $77,875,000 of Series 2021 Bonds with a yield of 1.95% to the first call date of the 30-year maturity. Lack of a debt service reserve fund did not negatively impact the pricing and the refinancing of the Series 2017A and Series 2017B Bonds saves over $400,000 in annual debt service. Sims secured a five-year call feature at a 103% premium declining to a par call after eight years.

“Sims has been a great partner throughout the process of welcoming The Summit to LifeSpire. They strategized during the competitive bid process and designed a creative plan of finance that strengthens our financial position and flexibility as we continue to grow. With the help of Sims, we maintained our BBB rating and achieved financing terms that exceeded our expectations,” says Jonathan Cook, President & CEO, LifeSpire.

Financed Right®: Tom Bowden: 804.398.8577 | tbowden@hjsims.com or Nick Roberts: 469.371.3946 | nroberts@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 Executes Complex $132.4 Million Obligated Group Financing for Benedictine

FOR IMMEDIATE RELEASE

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

HJ Sims Executes Complex $132.4 Million Obligated Group Financing for Benedictine

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 July refinancing for $132,405,000 for Benedictine Health System (Benedictine), a MN nonprofit, Catholic healthcare system providing long-term care services, congregate housing, assisted living, rehabilitation, healthcare and social services.

Historically, most of Benedictine’s affiliates were financed on a standalone basis, resulting in 36 series of outstanding debt for 19 different borrowers. The various series of debt were held by eight different banks or servicers with inconsistent terms, covenants, and reporting requirements. Benedictine’s board and executive leadership team sought to actualize a capital framework to ensure growth, transformation of service mix, and reinvestment in existing campuses. In August of 2020, Sims was engaged to spearhead this project.

Sims constructed an initial Obligated Group providing the foundation for Benedictine to realize its finance goals. Sims created and utilized a multi-faceted decision matrix that considered factors specific to each affiliate and its outstanding debt. Twenty-one senior living communities, 14 in MN and seven in ND, were selected for the Obligated Group.

Sims focused on finalizing key provisions for the Master Trust Indenture to give Benedictine’s organizational and capital structure future flexibility. Sims determined the appropriate debt structure. Because most of the existing debt was bank debt, a shorter 20-year amortization was selected to avoid an extension of the debt’s weighted average maturity. Taxable debt was selected to refinance the debt allocable to the ND communities to avoid using two issuers and to give Benedictine the flexibility of debt repayment. Sims worked with bond counsel to secure host approval and execute joint powers agreements among 20 municipalities or issuers throughout MN.

Sims solicited a broad group of commercial lenders to obtain term sheets for the taxable and tax-exempt debt. Sims requested that proposing lenders agree to the same terms as prospective bondholders eliminating the need for a separate financing agreement. Sims required that proposing lenders underwrite the loan such that the real estate was secured as an abundance of caution, and appraisals and LTV requirements would not apply. Sims and Benedictine ultimately chose to work with two lenders with whom Benedictine had longstanding relationships.

While working on the bank debt, Sims distributed long term fixed-rate bonds to the public market. Although the Obligated Group was not qualified for an investment grade rating, Sims ensured that the underlying credit strength of the operations was understood by investors. Along with strong retail participation from Sims wealth management clients, the bonds resulted in oversubscription and repricing of the bonds below expectations. Benedictine achieved a nominal amount of net present value savings and reduced its average coupon from 3.80% to 3.50%. The financing enabled Benedictine to borrow an additional $10M for routine capital expenditures across its campuses. Even with debt increase annual debt service decreased $2.0M+ facilitated by structuring the debt for level debt service. By borrowing at low rates for capital expenditures that would have been funded by operating cash, Benedictine will be in a better position to build its liquidity in the future.

Financed Right® Solutions—Lynn Daly: 312-505-5688 | ldaly@hjsims.com or 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. Past performance is no guarantee of future results.  Facebook, LinkedIn, TwitterInstagram.

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HJ Sims Advises Peoples of Bastrop on the Acquisition of a Private Water System via a Taxable Bond Issuance

FOR IMMEDIATE RELEASE

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

HJ Sims Advises Peoples of Bastrop on the Acquisition of a Private Water System via a Taxable Bond Issuance

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 July 2021 financing in the amount of $10.635 million for Peoples of Bastrop, a privately held water utility operator (Sponsor) specializing in the acquisition and management of private water and wastewater systems reached an agreement to acquire a private system serving 6,000+ customers in North LA (System).

The Sponsor has demonstrated a strong track record of operating water utilities, reducing expenses through the implementation of streamlined operations and economies of scale, but was looking for an innovative approach to acquire an additional water system in their operational footprint.

Sims underwrote the taxable municipal bond issue in the amount of $10.635 million, which was used to purchase the System from the existing operator. Initially, the plan of finance was to take the offering to a limited potential buyer base, but positive market feedback lead to Sims opening the offering to the institutional bond market. To appeal to a broader investor base, and level annual debt service in aggregate, Sims structured one medium-term bond maturing in 2033 and a long-term bond maturing in 2051.

The Sponsor found the taxable bond structure attractive for the acquisition as it provided higher leverage compared to a conventional bank loan, helping avoid raising unsecured subordinate debt at a higher cost of capital or diluting ownership in the System. The bond issue was structured with working capital and system improvements funds, allowing the Sponsor to implement their planned improvements and make necessary upgrades.

The financing consisted of a $2.375 million, 12-year taxable bond at a yield of 5.364%, and a $8.26 million, 30-year taxable bond at a yield of 5.802% underwritten by Sims. The outside-of-the-box, customized financing structure helps the long-time operator preserve strategic capital for additional growth opportunities and for the support of other systems in their portfolio.

“Our company recently acquired a water utility in northeast LA. We were fortunate to engage Sims to underwrite a taxable municipal bond in the amount of $10.635 million used to purchase the system and fund multiple reserve accounts. Jimmy Rester and his team were extremely knowledgeable and brought the necessary experience to close a complex transaction. There is no question that Sims will be a valued partner on all future financing projects we endeavor to accomplish,” Jeff McNew, Co-Founder/Managing Member.

Financed Right® Solutions—James Rester: 901.652.7378 | jrester@hjsims.com or Ryan Snow: 843.870.4081 | rsnow@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 Accomplishes an Intricate and Multi-faceted Refinancing for Aldersgate

FOR IMMEDIATE RELEASE

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

HJ Sims Accomplishes an Intricate and Multi-faceted Refinancing for Aldersgate

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 July 2021 refinancing for $44,025,000 for Aldersgate United Methodist Retirement Community (Aldersgate), a continuing care retirement community in Charlotte, NC.

Sims partnered with Aldersgate in 2019 with a financing for Generations at Shalom Park. In 2020, Sims identified a refunding opportunity for Aldersgate’s outstanding Series 2013 Bonds. In 2017, the Tax Cuts and Jobs Act (TCJA) eliminated advance refundings using tax-exempt municipal bonds. Therefore, Sims utilized Cinderella Bonds, which would be taxable until the optional redemption date, after which the bonds would convert to tax-exempt, complying with TCJA. Sims proposed that the Cinderella Bonds be purchased by a commercial bank, eliminating the debt service reserve fund requirement for the Series 2013 Bonds. Sims customized the amortization schedule to optimize Aldersgate’s aggregate Maximum Annual Debt Service (MADS) creating an $185,000 in reduced MADS.

In 2021, Aldersgate pursued the Cinderella financing with Sims serving as Placement Agent. Sims and Aldersgate’s financial advisor, Pearl Creek Advisors, conducted a large bank solicitation and held a virtual site visit, requesting proposals for refinancing Aldersgate’s outstanding Series 2017B Bank Debt, which was privately held by Truist Bank. The goals of this refinancing included extending the put date, lowering the credit spread by 80 bps, and eliminating variable interest rate risk. 

Sims and Pearl Creek Advisors negotiated with multiple banks on behalf of Aldersgate to receive the most competitive terms, selecting Truist Bank, whose commitment featured attractive interest rates, a 12-year commitment period, covenants that largely conformed to Aldersgate’s master trust indenture, and a SOFR- (Secured Overnight Financing Rate) based loan. Sims coordinated with Aldersgate’s swap advisor, KPM Financial, to structure three SOFR-based swaps and to terminate the existing Series 2017B swap. The refinancing of the Series 2017B Bank Debt included a tax-exempt swap.

Aldersgate and Truist closed on the $28,685,000 Series 2021A Bonds to defease the Series 2013 Bonds and the $15,340,000 Series 2021B Bonds to refinance the Series 2017B Bank Debt. The Cinderella Bonds offer about $250,000 or $3,889,019 in total savings. The refinancing of the Series 2017B Bank Debt extended the put date by six years, eliminated interest rate risk through the commitment, and lowered the all-in swap rate from 3.9215% to 2.587%. Aldersgate increased its debt service coverage ratio by 0.14 bps.

“It was a pleasure and gift having Sims lead our organization through a successful refinancing. Sims has exceptional technical skills and provided our various stakeholders clear guidance and wise counsel every step. Their processes and people truly create an experience of allowing for alignment of the end goal being accomplished, with honoring our mission and the strategic vision to which we are committed. We are grateful for our partnership with Sims and look forward to future opportunities to work side-by-side toward exciting outcomes for the future of Aldersgate,” Suzanne Pugh, President/CEO, Aldersgate.

Financed Right® Solutions—Tom Bowden: 804.398.8577 | tbowden@hjsims.com or David Saustad: 214.909.8588 | dsaustad@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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The FBI Criminal Investigative Division and the United States Securities and Exchange Commission’s Office of Investor Education and Advocacy (OIEA) warn of fraudsters

As released by the United States Securities and Exchange Commission on July 27, 2021

The FBI Criminal Investigative Division and the United States Securities and Exchange Commission’s Office of Investor Education and Advocacy (OIEA) warn of fraudsters swindling investors while pretending to be registered brokers or investment advisers.

Fraudsters may falsely claim to be registered with the Securities and Exchange Commission (SEC), the Financial Industry Regulatory Authority (FINRA) or a state securities regulator in order to lure investors into scams, or even impersonate real investment professionals who actually are registered with these organizations. Fraudsters may misappropriate the name, address, registration number, logo, photo, or website likeness of a currently or previously registered firm or investment professional. They try to trick investors into believing that they are registered by using a number of tactics, including the following:

  • “Spoofed Websites.” Fraudsters may set up websites using URL addresses or names similar to those of registered firms or investment professionals to trick investors into believing that the fraudsters are registered or that the fraudsters are affiliated with a registered firm or investment professional.
  • Fake Profiles on Social Media. Fraudsters may set up profiles impersonating registered investment professionals on popular social media platforms and then message investors to solicit their money.
  • Cold Calling. Fraudsters may set up boiler rooms with teams of people cold calling investors to solicit their money while claiming to be employees of registered firms. The fraudsters may use technology to make it appear they are calling from the firm’s location.
  • Misrepresenting or Falsifying Documents. Fraudsters may recruit investors by misrepresenting that their firm was registered with the SEC, including pointing to the firm’s Form D filings to support the misrepresentation (to learn more, read this OIEA Investor Alert). Fraudsters may solicit investors by impersonating a registered investment professional and generating a fake version of a public report using the professional’s name and CRD number (to learn more, read this FINRA Investor Alert).

Registration of Investment Professionals. Many sellers of investment products or services are either brokers, investment advisers, or both. Most brokers must register with the SEC and join FINRA. Investment advisers that provide investment advice to retail investors generally must register with the SEC or the state securities regulator where they have their principal place of business.

Verify the identity of anyone offering you an investment. Don’t rely on the website or contact information the person provides you. If you suspect someone is falsely claiming to be registered with the SEC, do not give the person any money and do not share your personal information. Report the person to the SEC.

To quickly and easily check if someone offering you an investment is currently licensed or registered, use the search tool on Investor.gov. Once you confirm that the seller is licensed or registered, make sure you are not dealing with an imposter. Contact the seller using contact information you verify independently – for example, by using a phone number or website listed in the firm’s Client Relationship Summary (Form CRS) – rather than relying on contact information the seller provides you. To ensure you are looking at a genuine copy of the firm’s Form CRS, follow these steps:

  1. In the “Check Out Your INVESTMENT PROFESSIONAL” search box on Investor.gov, select “Firm” from the drop down options and type in the name of the firm.
  2. In the search results, click on the relevant firm and then click on “Get Details.”
  3. Click on “Relationship Summary” or “Part 3 Relationship Summary.”

For additional information about Form CRS, visit investor.gov/CRS.

Watch Out for Red Flags             

Regardless of whether someone claims to be registered with the SEC, beware if you spot these warning signs of an investment scam:

  • Guaranteed High Investment Returns. Promises of high investment returns – often accompanied by a guarantee of little or no risk – is a classic sign of fraud. Every investment has risk, and the potential for high returns usually comes with high risk.
  • Unsolicited Offers. Unsolicited offers (you didn’t ask for it and don’t know the sender) to earn investment returns that seem “too good to be true” may be part of a scam.
  • Red flags in Payment Methods for Investments.
    • Credit Cards. Most licensed and registered investment firms do not allow their customers to use credit cards to invest.
    • Digital Asset Wallets and “Cryptocurrencies.” Licensed and registered financial firms typically do not require their customers to use digital asset wallets or digital assets, including so-called “cryptocurrencies,” to invest.
    • Wire Transfers and Checks. If you pay for an investment by wire transfer or check, be suspicious if you’re being asked to send or to make the payment out to a person or to a different firm, the address is suspicious (for example, an online search for the address suggests it is not an office building where the firm operates), or you are told to note that the payment is for a purpose unrelated to the investment (for example, medical expenses or a loan to a family member). If you wire money outside of the United States for an investment that turns out to be a scam, you likely will never see your money again. 

Report possible securities fraud to the SEC at www.sec.gov/tcr. Report online fraud to the FBI’s Internet Crime Complaint Center at https://www.ic3.gov.

The SEC maintains a list of Impersonators of Genuine Firms. This list is not exhaustive – firms may be impersonated even if they are not on the list.

FINRA staff issued an article about imposter schemes.

More information about online frauds and investment scams can be found at www.fbi.gov or Investor.gov, the SEC’s website for individual investors.    

You can contact the SEC’s Office of Investor Education and Advocacy (OIEA) by phone at 1-800-732-0330, using this online form, or via email at Help@SEC.gov

Receive Investor Alerts and Bulletins from OIEA by email or RSS feed. Follow OIEA on Twitter @SEC_Investor_Ed. Like OIEA on Facebook at facebook.com/secinvestoreducation.

This alert represents the views of the staff of the Office of Investor Education and Advocacy. It is not a rule, regulation, or statement of the Securities and Exchange Commission (“Commission”). The Commission has neither approved nor disapproved its content. This bulletin, like all staff guidance, has no legal force or effect: it does not alter or amend applicable law, and it creates no new or additional obligations for any person.

HJ Sims Advises Poydras Home on Expansion Project, Community Improvements and Refinancing

FOR IMMEDIATE RELEASE

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

HJ Sims Advises Poydras Home on Expansion Project, Community Improvements and Refinancing

 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 May 2021 financing in the amount of $23,340,000 for Poydras Home (Poydras), a continuing care retirement community in New Orleans, LA.

Opened in 1857, Poydras now consists of 10 independent living units, 22 assisted living units, 11 memory care units and 64 private nursing care beds. Poydras will replace all 64 nursing units with a small-house model and add 14 new assisted living units across two three-story buildings. Poydras engaged Sims to assist in developing a plan of finance, and to navigate and plan for operations post-COVID-19.

Poydras will be the first certified Green House project in Louisiana, featuring an innovative Green Home model of care where the resident’s needs are at the center of all decisions. This person-centered approach provides residents with individualized care and higher levels of satisfaction. The Green Homes will be housed in two new three-story buildings on the campus. Building 1 will feature three nursing care households with 12 residents, and Building 2 will be comprised of two nursing care households with 14 residents and one assisted living memory care household with 14 residents. Each home will offer private bedrooms and baths, open-concept kitchen, dining room, living room, den, and outdoor space overlooking gardens.

Sims evaluated plans of finance and structured two taxable loans with a commercial bank. Poydras sought to refinance the organization’s outstanding loan to create debt service savings. Sims coordinated with management and the Board of Poydras on a strategy that combined their two financing goals: funding their new project (Construction Loan), and refinancing their existing loan (Refinancing Loan). Sims led the bank RFP process, selecting Hancock Whitney as the preferred banking partner. As well, Poydras was notified that their planned construction contractor would be unable to complete the project; therefore, Sims worked closely with the team to revise the plan of finance and secure a new construction partner.

Poydras Home, Sims, and Hancock Whitney closed the $23.34 million financing, which consisted of a $16.50 million taxable draw-down construction loan and a $6.84 million taxable refunding loan. Hancock Whitney served as the commercial lending partner for both loans. The Series Construction Loan was issued with a 25-year principal amortization and 10-year term with a 24-month capitalized interest period and a forward-starting swap drawdown structure to provide significant savings. The Refunding Loan was issued with a 25-year term with a significant rate premium to break the existing swap.

“Poydras was impressed with the responsiveness of our partners at Sims in resolving questions and concerns when working with an active Board of Directors, during a building supply shortage, an uncertain economic landscape, a pandemic and via Zoom. The process was much less stressful than our previous transactions, and we left knowing we got a great deal for the future of our mission at Poydras. Our duty is to provide the best care for our elders and to protect the assets of Poydras, which will be met with this expansion. We are grateful for Sims’ expertise,” said Erin Kolb, CEO, Poydras.

Financed Right® Solutions—James Rester: 901.652.7378 | jrester@hjsims.com or Ryan Snow: 843.870.4081 | rsnow@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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Asbury Communities Partners Again with HJ Sims to Achieve Savings

FOR IMMEDIATE RELEASE       

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

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 | arulnick@hjsims.com  or Melissa Messina: 203.418.9015 | 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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HJ Sims Provides High-leverage Acquisition Financing for a Utah Senior Living Community

FOR IMMEDIATE RELEASE  

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

HJ Sims Provides High-leverage Acquisition Financing for a Utah Senior Living Community

FAIRFIELD, CT– HJ Sims (Sims), a privately held investment bank and wealth management firm founded in 1935, is pleased to announce that it recently provided a high leverage bridge loan for the successful acquisition of a Utah senior living community.

The community has been the most recognized option for seniors housing in its local market and will continue to care for long-time residents that in some cases, come from miles away. Featuring 55 units of assisted living and memory care, the community features mountain views from its hilltop location in a thriving and growing local market.

A regional owner, operator and developer of seniors housing communities, with 15+ years of experience, partnered with Sims to close on the acquisition. The well-established group specializes in assisted living and currently manages over 1,600 units in more than 25 communities across five states in the Mountain West region. The sponsor has deep local knowledge and is well experienced in bringing that local touch to their communities, making it truly feel like home for all of their residents. With a strong understanding, and insight into the major primary markets and growing secondary markets in the region, the group’s local knowledge and operational expertise provides a clear strategy in expanding their geographical reach. This addition to their growing portfolio is an ideal fit.

Seeking a high-leverage acquisition loan and the ability to close under tight timing constraints, the owner/operator approached Sims for the solution. Partnering with Live Oak Bank, Sims provided a high-leverage bridge loan to fund the acquisition, and arranged funds for capital improvements at the property. The first mortgage was structured as an A/B uni-tranche loan, acting as a single debt obligation with one set of loan documents and one monthly mortgage payment.

The high-leverage A/B structure proved to be different from a conventional bank loan, allowing the operator to increase their ownership and avoid involving additional equity partners. The loan was structured with an interest-only period, allowing the group to limit debt service expense over the near term. The loan included an upfront debt service reserve, which allowed the first payment to be pushed out enabling the borrower to focus immediate, out-of-pocket expenses on capital improvements at the property, prioritizing the upgrade of the community.

The “outside-of-the-box” customized financing structure helps the long-time operator preserve strategic

capital for additional growth opportunities and for the support of other communities in their portfolio. A principal and co-founder of the group commented, “Sims not only provided a unique solution that helped us reduce the need for outside investors that would dilute our ownership, but met the timing constraints that were so important to everyone involved.”

Sims excels in providing customized, timely financing solutions for communities across the country, allowing owners and operators to focus on providing quality senior living at their communities.

Financed Right® Solutions—Jeff Sands: jsands@hjsims.com or 203.418.9002 | Brady Johnson: bjohnson@hjsims.com or  949.558.8297 | Curtis King: cking@hjsims.com or 512.519.5003 | Brett Edwards: bedwards@hjsims.com or 512.519.5001

 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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