Sims Mortgage Funding’s very successful 2021 can be described in a single word – refinance. We completed eleven refinancing deals last year, totaling approximately $131 million, for existing clients who had HUD-insured loans already in place.
Continue reading
“When our Board of Trustees chose HJ Sims to represent Clark in identifying and evaluating potential affiliation partners it was due to two key factors: 1) HJ Sims reputation and experience in working with non-profit, faith based Life Plan Communities through this process and 2) Clark’s ability to work with Lynn Daly. Lynn has consistently demonstrated to me and my Board a willingness to know and embrace our mission, vision and values over the time we have worked with her. She is also honest and frank about the process and how it will work. We are very pleased with the work and support received from HJ Sims and Lynn Daly and we look forward to continuing our relationship with them for years to come.” – Brian Pangle, President/CEO, Clark
Continue reading
LIBOR, which has been the primary index upon which Senior Living Bank Loans and Swaps have been denominated in new and existing financings, is to be discontinued and as such a replacement index is needed. Borrowers should consider the use of an alternate index, and this piece provides expertise on the pending LIBOR replacement as a consideration for senior living organizations.
Continue readingHJ Sims is thrilled to congratulate our Jupiter, FL-based Rebecca Beckett on accomplishing her goal of earning the Certified Financial Planner™ professional certification.
Rebecca recently passed the CFP® certification examination and met the additional requirements to earn the designation. We are proud to recognize this significant accomplishment and Rebecca’s hard work and determination. The CFP® designation is the highest standard of excellence in the field of personal financial planning.
The path to CFP® certification is a rigorous but rewarding process, equipping candidates like Rebecca with the knowledge and skills to assist with providing comprehensive financial advice to clients. Successful candidates complete a multi-year, multi-step process to obtain the skills and real-life experience needed to serve your best interests, no matter what your financial goals are. They pledge to adhere to high ethical and professional standards for the practice of financial planning, always putting your welfare first. CFP® professionals are trained in the fundamentals of financial planning, estate planning, insurance planning, investments, retirement planning and tax planning. They can provide a detailed financial plan supporting all areas of your financial life, or offer advice about a specific financial need.
As a CFP® professional, Rebecca offers financial planning services incorporating a holistic view of her clients’ financial and personal circumstances. Financial planning is the output of a collaborative process that helps maximize your potential for meeting your life goals. With more than 15 years’ experience in financial services, Rebecca is passionate about helping instill investment confidence an offering tailored guidance for her clients.
Next time you speak with Rebecca in our Jupiter office, be sure to join us in congratulating her on this brilliant professional milestone.
More about Rebecca
Information is provided as a public service by Certified Financial Planner Board of Standards, Inc. (CFP Board). A nonprofit, professional organization, CFP Board fosters professional standards in personal financial planning so that the public values, has access to, and benefits from competent and ethical financial planning.
CFP® certification marks are owned by Certified Financial Planner Board of Standards, Inc. (CFP Board). Individuals certified by CFP Board have taken the extra step to demonstrate their professionalism by voluntarily submitting to the CFP® certification process that includes education, examination, experience and ethical requirements.
by Anthony Luzzi
“When you work with a mortgage banker for 15 years they become as much a part of your team as your architects, engineers and contractors. They have consistently delivered positive results and have closed deals that otherwise would have never happened. Their knowledge of each HUD program is unsurpassed, and it is very obvious that every HUD office they have worked with has the utmost confidence and respect for their team. With the respect from the different offices, they are able to reach out to the higher levels of HUD to solve problems. We look forward to working with Sims for many years to come and we strongly recommend them to any company interested in completing a HUD loan.”
– David Alexander, Managing Partner, Vintage Realty Company
PARTNERED RIGHT
In 2018 we originated an $26,172,500 FHA-insured Section 221(d)(4) loan that financed construction of Elan at Terra Bella a 178-unit market-rate apartment project located in a planned community. The Project was developed and is managed by Vintage Realty Company, a privately owned, full-service real estate firm specializing in the brokerage, leasing, property asset management, development, and construction.
Interest rates had declined since the original financing, providing Vintage with the opportunity to generate debt service savings. We advised them of this positive development in the market and suggested a refinancing structured under HUD’s Mortgage Note Modification/Interest Rate Reduction (IRR) protocol.
STRUCTURED RIGHT
Acting as Financial Advisor, we developed the initial financial modeling of the transaction and coordinated the development of the formal IRR proposal with the existing loan servicer, whom we brought into the 2014 refinancing. The entire transaction took approximately 75 days to complete.
EXECUTED RIGHT
The IRR reduced the interest rate by 22% and will generate total debt service savings of approximately $6.2 million through the remaining term of the loan.
FINANCED RIGHT®
The IRR, completed three years after our initial financing, is another example of SMF maintaining long-term relationships with our clients and delivering to them ongoing value. Sims has closed 26 HUD-insured loans for Vintage since 2002.
For more information, please contact Kerrie J. Tomasiewicz at [email protected].
Sims Mortgage Funding, Inc. originates, underwrites, and funds loans for Healthcare, Multifamily and Hospital projects. We have completed over $2 billion in HUD-insured transactions and are an approved LEAN (healthcare) and MAP (multifamily) lender.
Sims Mortgage Funding, Inc. is a wholly owned subsidiary of HJ Sims.
HJ Sims is pleased to announce the successful closing of a November 2021, $398.1 million tax-exempt and taxable bond issue for Purchase Senior Learning Community, Inc., formed to develop a new university-based retirement community, Broadview at Purchase College, being constructed on the State University of New York Purchase College campus in Purchase, NY.
Continue readingHJ Sims is pleased to announce the successful closing of a September 2021, $8.781 million taxable note on behalf of Clark Lindsey Village. Established in 1978, Clark Lindsey Village is a not-for-profit Life Plan Community located in Urbana, Illinois. Today, the campus encompasses all levels of care with 147 units of Independent Living; 12 units of Memory Care and Assisted Living; as well as 105 beds dedicated to Skilled Nursing. It is one of eight communities in the nation to have earned the designation as a “Center for Successful Aging.”
Continue readingHJ Sims is pleased to announce the successful closing of a July 2021 financing in the amount of $26.3 million for United Church Homes (UCH). Sims was hired to assist UCH in connection with securing financing to acquire the Polaris Retirement Community from Polaris Retirement Living Properties, LP. A newly built independent senior living community for those 55 and older having 136 one- and two-bedroom apartments located north of Columbus, OH.
Continue readingFOR IMMEDIATE RELEASE
CONTACT: Shauna Reilly, CMO | 203-418-9043 | [email protected]
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 | [email protected] , Jim Bodine: 267.360.6245 | [email protected], Siamac Afshar: 267.360.6250 | [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.
###
FOR IMMEDIATE RELEASE
CONTACT: Tara Perkins, AVP | 203-418-9049 | [email protected]
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 | [email protected] or Nick Roberts: 469.371.3946 | [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.
###
FOR IMMEDIATE RELEASE
CONTACT: Tara Perkins, AVP | 203-418-9049 | [email protected]
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 | [email protected] or Kerry Moynihan: 407-313-1702 | [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. Past performance is no guarantee of future results. Facebook, LinkedIn, Twitter, Instagram.
###
FOR IMMEDIATE RELEASE
CONTACT: Tara Perkins, AVP | 203-418-9049 | [email protected]
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 | [email protected] or Ryan Snow: 843.870.4081 | [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.
###
FOR IMMEDIATE RELEASE
CONTACT: Tara Perkins, AVP | 203-418-9049 | [email protected]
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 | [email protected] or David Saustad: 214.909.8588 | [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.
###
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:
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:
For additional information about Form CRS, visit investor.gov/CRS.
Regardless of whether someone claims to be registered with the SEC, beware if you spot these warning signs of an investment scam:
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 [email protected].
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.
FOR IMMEDIATE RELEASE
CONTACT: Tara Perkins, AVP | 203-418-9049 | [email protected]
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 | [email protected] or Ryan Snow: 843.870.4081 | [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.
###
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.
###
HJ Sims provides high-leverage acquisition financing for senior living community in Utah.
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.
Read more in Seniors Housing Business.
FOR IMMEDIATE RELEASE
CONTACT: Tara Perkins, AVP | 203-418-9049 | [email protected]
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: [email protected] or 203.418.9002 | Brady Johnson: [email protected] or 949.558.8297 | Curtis King: [email protected] or 512.519.5003 | Brett Edwards: [email protected] 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, Twitter, Instagram.
###
FOR IMMEDIATE RELEASE
CONTACT: Tara Perkins, AVP | 203-418-9049 | [email protected]
HJ Sims Partners with Westminster Village as Investment Bank and Swap Advisor Helps Community Accomplish a Refinancing
FAIRFIELD, CT– HJ Sims (Sims), a privately held investment bank and wealth management firm founded in 1935, is pleased to announce the successful June 2021 Direct Bond Placement in the amount of $60,515,000 for Westminster Village (WVWL) in West Lafayette, IN.
WVWL was established in 1976 and subsequently formed into a not-for-profit Life Plan Community (LPC) in 1981. Located off of Cumberland Park in West Lafayette, IN, WVWL held a long-standing reputation for producing quality services to middle-class retirees. Historically a partner with Purdue University, WVWL’s reputation and mission grew into today’s 346-bed LPC.
Given WVWL’s financial strength, the community sought to take advantage of the low interest rate environment in 2020 to refinance its outstanding Series 2014 tax-exempt and taxable Direct-placement Bonds (Series 2014 Bonds). The incumbent bank proposed a refinancing opportunity that struck WVWL’s management team as an above-market proposal. WVWL engaged Sims to analyze the proposal. Sims was chosen based on experience, market-depth and culture. Sims solicited banking partners based on engagement and initial analysis.
WVWL went into the market seeking to refinance the Series 2014 Bonds. Tied to the Series 2014 Bonds were two swaps that were largely out-of-the-money; WVWL also had a legacy forward-starting swap that was originated in 2010 and became effective in 2020 during COVID-19.
Sims constructed a plan of finance to generate adequate debt service savings despite the expenses associated with refunding the Series 2014 Bonds and terminating all of WVWL’s Swaps. The plan of finance conformed to the terms provided by any potential banking partners via the bank solicitation.
Sims found a banking partner with terms that would offer flexibility and savings for WVWL. The partner offered a proposal that provided material savings. The plan of finance Sims tailored for WVWL generated enough savings to for the community to reconsider a new-money. The $15 million project repurposed some of WVWL’s existing independent living units into assisted living and memory care units that were in high demand on campus.
Sims, in conjunction with the new banking partner, crafted the $60,515,000 plan of finance (Series 2021 Bonds). The financing included the refinancing escrow for the Series 2014 Bonds, the termination of all existing swaps (including the forward-starting swap), and a draw-down facility for the new-money project. The terms provided by the banking partner and the structure formulated by Sims allowed for WVWL to comfortably execute the Series 2021 Bonds without increasing residents’ monthly service fees. This was accomplished via aggressive pricing, a 12-year term, and a 30-year amortization provided by the new banking partner.
Sims closed the Series 2021 Bonds for WVWL via Direct Placement Bonds for the tax-exempt refinancing, a Term Loan for the taxable refinancing, and a draw-down facility for the new project money. After pricing the new swaps for the refinancing debt, Sims captured a taxable interest rate of 3.19% and a tax-exempt interest rate of 2.54% for WVWL. The credit spread for the refinancing portion was 100 bps lower than the incumbent bank’s original refinancing proposal. The new-money project funds were kept variable and will utilize a draw-down feature that allows WVWL to materialize capitalized interest savings. Sims generated a plan of finance that accomplished all of WVWL’s objectives, including $15 million in new-money, without increasing maximum annual debt service against the refunded Series 2014 Bonds, resulting in an efficient capital structure for the community that generated savings and a new product offering for campus residents to enjoy.
“As I was relatively new to my position, the thought of handling a refinancing seemed like a daunting task. Thankfully, after careful consideration our Board of Directors chose to partner with Sims. Sims understands the complex procedures involved with refinancing and made sure to provide extensive education during the entire process. Lynn and Brady took great care in ensuring each step was broken down into understandable components. I truly enjoyed working with Sims and look forward to continuing our partnership for years to come,” said Jessica Argerbright, Director of Accounting and Finance, WVWL.
Financed Right® Solutions—Lynn Daly: [email protected] or 312.505.5688 | Brady Richardson: [email protected] or 240.207.1362.
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.
###
by Anthony Luzzi
Although it is headquartered in New Jersey, Sims Mortgage Funding seems to have a second home in Louisiana – we have closed close to $530 million in HUD-insured loans in the Pelican State. We returned there last month to complete a $10,814,900 refinancing for Metairie Manor, a 287-unit, Section 8 funded, affordable senior housing community owned and managed by affiliates of the Archdiocese of New Orleans.
The backstory? We originally refinanced Metairie Manor in 2012 when it paid off its HUD Section 202 Direct Loan; that refinancing produced about $250,000 in annual debt service savings that have been used to fund wellness and affordable nutrition programs, resident units deep-cleaning services, and enhanced transportation options. Interest rates for HUD-insured loans have dropped since the 2012 refinancing, so the Archdiocese brought us back to evaluate options to generate more debt service savings.
Our solution? We originated a new HUD-insured loan under the Section 222(a)7 program, an expedited review option that does not require an appraisal and has a pared-down application and underwriting format. This minimized the time it took us to develop the application and loan underwriting, and the time it took for HUD to review and approve the deal.
The result? The 223(a)(7) loan reduced the project’s interest rate by 33% and produced debt service savings of $118,000 annually. Moreover, in order to maximize annual debt service savings, we negotiated an extension of the loan term of almost 10 years. The additional savings from the new 223(a)(7) loan materially expands Metairie Manor’s capacity to provide services and programs to its residents, enhancing it already-solid reputation in the community. We also built approximately $700,000 into the new loan to supplement the existing Reserve for Replacements fund, so there is a stable platform to provide for Metairie’s physical needs in the future.
The takeaway? The new 223(a)(7) loan will enable Metairie Manor to expand its programs and services and increase its capital reserves – all to be accomplished without an increase in the existing Section 8 funding.
An encore? The Metairie Manor refinancing is the eleventh HUD-insured loan we have closed for the Archdiocese and its management affiliate, Christopher Homes, Inc.
For more information, please contact Andrew Patykula at [email protected].
Sims Mortgage Funding, Inc. originates, underwrites, and funds loans for Healthcare, Multifamily and Hospital projects. We have completed over $2 billion in HUD-insured transactions and are an approved LEAN (healthcare) and MAP (multifamily) lender.
Sims Mortgage Funding, Inc. is a wholly owned subsidiary of HJ Sims.