An Investment Opportunity: Landis Homes

Landis Homes Logo
Landis Homes Logo

$52,210,000*
LANCASTER INDUSTRIAL DEVELOPMENT AUTHORITY

Health Center Revenue Refunding Bonds
Landis Homes Retirement Community
SERIES 2021

HJ Sims is pleased to serve as sole underwriter for tax-exempt Series 2021 revenue refunding bonds on behalf of Landis Homes, located in Lititz, PA. Landis Homes is a not-for-profit retirement community which is home to 875+ persons living in cottages, apartments, hybrids, suites, personal care and healthcare on a 114-acre campus surrounded by
Lancaster County farmland.

Landis Homes is an affiliate of the Landis Communities, which started in the early 1960s when Eastern Mennonite Board of Missions and Charities (now EMM) began exploring how they might develop a community for retired mission workers, pastors and others. Landis Communities is the location of choice for those who follow the Mennonite faith tradition. There is a very strong connection to the local churches and almost 55% of the residents come from the Mennonite faith. Most Mennonite Communities in Lancaster County do not have a similar representation.

Landis Communities is committed to creatively serving the diverse needs and interests of older adults. These needs come from a cross-section of races, ethnicities, and socioeconomic status.

About the Bonds

  • Series 2021
    • $52,210,000*
    • Fitch Rated “BBB-” Stable Outlook
    • Bonds are exempt from Federal Income Tax and exempt from State of Pennsylvania Income Tax
    • Denominations of $5,000; no transfer restrictions
    • Interest will be payable on January 1 and July 1 of each year, commencing January 1, 2022
    • First principal payment: July 1, 2023

Project

  • Refund outstanding bank debt
  • Expected renovation and improvement of facilities, independent living areas and housing units.

Security

  • Secured by Master Trust Indenture
    • Includes pledge of Gross Receipts of the Obligated Group and mortgage of substantially all real estate of the Borrower
  • 50% Funded Debt Service Reserve Fund

 Key Financial Covenants

  • 1.20x Debt Service Coverage Ratio; tested annually
  • 120 Days Cash on Hand; tested semi-annually
  • Event of Default if DSRC is below 1.00x for two consecutive fiscal years

We are currently accepting indications of interest for these tax-exempt bonds with an expected pricing the week of September 13, 2021, and anticipated settlement during the week of September 27, 2021. For more information including risks, please read the Preliminary Official Statement in its entirety. If you have interest in purchasing these bonds, please contact your HJ Sims financial professional as soon as possible.

LEARN MORE
888.588.7559

*Subject to change

No dealer, broker, salesperson, or other person has been authorized to give any information or to make any representation other than those contained in the Preliminary Official Statement and, if given or made, such other information or representation should not be relied upon as having been authorized by the Issuer, the Borrower, or the Underwriters. The information set forth herein has been obtained from the Issuer, Borrower, and other sources that are believed to be reliable, but is not guaranteed as to accuracy or completeness by, and is not construed as a representation of, the Underwriters. The information contained herein is subject to change without notice. Under no circumstances shall this constitute an offer to sell or solicitation of an offer to buy, nor shall there be any sale of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. Any offering or solicitation will be made only to investors pursuant to the Preliminary Official Statement, which should be read in its entirety. Investments involve risk including the possible loss of principal. HJ Sims is a member of FINRA and SIPC, and is not affiliated with Landis Homes

LeadingAge NY Financial Professionals Conference

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2021 Conference

HJ Sims is proud to be able to attend, exhibit, sponsor and speak on a session panel. 

Visit us at the HJ Sims Booth.

Session Date & Time: Thursday, September 2, 2021 from 8:45am – 9:45am ET

Thought Leadership and Educational Session:

Should I Refinance My Debt? (And If So, How?)

Interest rates remain low and the consensus regarding increased rates is not a matter of if but when. This session will provide a variety of options every organization should explore, from “Cinderella” and forward delivery bonds to tender options and taxable debt to maximize savings. We also will explore refinancing options for HUD-insured projects, including the Section 232/223(f), 223(f) and 223(a)7 mortgage insurance programs, and HUD’s streamlined Interest Rate Reduction (IRR) protocol.

Featured Speakers:

Contacts:

  • Andrew Nesi, Executive Vice President, HJ Sims
  • Anthony Luzzi, President, Sims Mortgage Funding
  • James Bodine, Executive Vice President, HJ Sims
REQUEST INFORMATION ON THIS PRESENTATION

Read more insightful thought leadership by the investment banking team at HJ Sims.

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HJ Sims Assists Elwyn Secure Replacement $45 million Taxable Credit Facility

FOR IMMEDIATE RELEASE

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

HJ Sims Assists Elwyn Secure Replacement $45 million Taxable Credit Facility

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 refinancing for $45,000,000 for Elwyn, the oldest and largest not-for-profit provider of support, treatment and education to children and adults with intellectual and developmental disabilities, autism and related behavioral health issues in the U.S.

Headquartered in Media, PA, Elwyn delivers education, residential and community-based treatment, and vocational training programs to more than 20,000 individuals in California, Delaware, New Jersey, Pennsylvania, Rhode Island, Maine, Massachusetts, North Carolina, and Virginia. Elwyn generates approximately $400 million in annual revenue and employs 3,500+. 

Elwyn engaged Sims in late 2020 to identify and implement a replacement credit facility and a new commercial banking relationship. Elwyn was executing a variety of initiatives pre-COVID19, including:

  • Implementing financial turn-around plan
  • Hiring a new CEO
  • Shifting reimbursement methodology with overall enhanced organizational revenue cycle management
  • Modernization of information technology systems
  • Integration of a behavioral services acquisition program and real estate holding evaluation
  • Prioritization and selective monetization of non-core real estate holdings

Elwyn faced COVID-19 related challenges, including reduced/shifted programming and challenged staffing availability. Elwyn effectively continued the transition, resulting in improved profitability along with significant increases in cash flow, which was applied to build liquidity along with a significant pay-down on its outstanding line of credit.

Sims conducted a comprehensive bank solicitation seeking a $45 million taxable credit facility, comprised of a $30 million line of credit and letters of credit for up to $15 million. The facility is secured by a pledge of gross revenues and a mortgage on Elwyn’s main campus on parity with Elwyn’s $56 million of outstanding tax-exempt bonds and tax-exempt/taxable bank debt.

Elwyn opted to combine participation of two new banking partners, with Key Bank providing up to $30 million and Bank United providing up to $15 million. Among the highlights of the new facility are interest rate denominated in SOFR (Secured Overnight Funding Rate) reflective of the upcoming transition from LIBOR as the industry benchmark interest rate; competitive interest rate pricing along with up-front and ongoing fees; integration with Elwyn’s outstanding long-term debt related to debt security and covenants; and expedited closing.

The closing represents an attractive replacement to Elwyn’s prior credit facility, and provides a reduced loan credit spread by approximately 75 basis points with liberalized reporting covenants. Sims was honored to play a role and to continue a 30-year banking relationship with Elwyn.

“We were fortunate to have Jim Bodine and Siamac Afshar shepherd us through the refinancing of our short-term line of credit in FY 2020. This represented a major turning point for Elwyn. Sims facilitated the process during COVID-19 under extraordinary circumstances. The team was professional, experienced and highly competent. Exactly what we needed, precisely when we needed it. We will continue to use Sims for similar activity in the future, post turnaround, as we return to strategic planning and growth,” Charles McLister, CEO, Elwyn.

Financed Right® Solutions—Jim Bodine: 267.360.6245 | [email protected] or Siamac Afshar: 276.360.6250 | [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.

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HJ Sims Market Commentary: Madcap Mid-Summer

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We are literally mid-summer and whether we are in the middle of our vacation or our workweek, we are never more than a few minutes away from a device blasting the latest headlines from every corner of the globe and even news from outer space.

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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 | [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.

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LeadingAge FL Annual Convention

LeadingAge Florida Logo

2021 Conference

HJ Sims is proud to be able to attend, exhibit, sponsor and speak on a session panel. 

Visit us at Booth #903.

Session Date & Time: Wednesday, September 1, 2021 from 4:00pm – 5:00pm ET

Thought Leadership and Educational Session:

Moving Forward: A Successful Affiliation Case Study – Westminster Communities

As the COVID-19 pandemic has brought some communities to the brink, more and more communities are considering affiliation for varying reasons. In this session, we will explore how Westminster Communities of Florida successfully turned around Glenmoor – a community that had been through two bankruptcies and had significant entrance fee liabilities at the time of acquisition.

Westminster Communities of Florida was not only able to turn the community around ahead of schedule, but they brought it into their obligated group ahead of schedule as the addition of Westminster St. Augustine (formerly Glenmoor) was accretive to the Obligated Group. This session will focus more on financial, operational and marketing strategies executed at the operator-level, overcoming negative market sentiment surrounding the outstanding entrance fees, and will briefly touch on the 2020 financing that brought WSA into the Obligated Group.

Featured Speakers:

  • Melissa Messina, Senior Vice President, HJ Sims
  • Hank Keith, CFO, Westminster Communities of Florida

Contacts:

REQUEST INFORMATION ON THIS PRESENTATION

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HJ Sims Market Commentary: Tenure

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The longest serving legislator in America, and the last World War II veteran to serve in a state legislature, resigned earlier this year after 64 years in public office. Those with decades of experience have much perspective to offer, favors to trade, bonds and relationships to rely upon, and powers to exercise and may make for a worthy debate on the subject of tenure and term limits.

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InterFace Seniors Housing Southeast

InterFace Conference Group Logo

2021 Conference

HJ Sims is proud to be able to attend, sponsor and speak on The Power Panel. 

Session Date & Time: Wednesday, August 18, 2021 from 8:50am – 9:45am ET

Thought Leadership and Educational Session:

The Power Panel: CEO’s Discuss the State of the Industry

The power panel will examine trend lines in investment, development, operations and finance. Attendees can expect an inside look at the challenges and opportunities across the seniors housing continuum when some of the biggest names in the industry come together to talk about the state of the industry. 

Featured Speakers:

  • Jeff Sands, Managing Principal and General Counsel, HJ Sims
  • Judd Harper, President, The Arbor Company
  • Jesse Marinko, CEO & Founder, Phoenix Senior Living
  • Douglas Schiffer, President & COO, Allegro Senior Living

Contacts:

REQUEST INFORMATION ON THIS PRESENTATION

Read more insightful thought leadership by the investment banking team at HJ Sims.

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

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.

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Asbury Communities Partners Again with HJ Sims to Achieve Savings

FOR IMMEDIATE RELEASE       

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

Asbury Communities Partners Again with HJ Sims to Achieve Savings  

FAIRFIELD, CT– HJ Sims (Sims), a privately held investment bank and wealth management firm founded in 1935, is pleased to announce the successful closing of a June 2021 financing for $47,615,000 for Asbury Communities, Inc. (Asbury), which owns/operates life plan communities in PA, MD, and TN, HUD Section 202 senior housing, a foundation and a technology consulting firm. The facilities included in its PA and MD Obligated Groups are owned/operated by Asbury Atlantic, Inc., a wholly-owned subsidiary of Asbury.

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

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

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

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

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

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

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

 

ABOUT HJ SIMS: Founded in 1935, HJ Sims is a privately held investment bank and wealth management firm. Headquartered in Fairfield, CT, Sims has nationwide investment banking, private wealth management and trading locations. Member FINRA, SIPC. Testimonials may not be representative of another client’s experience. Past performance is no guarantee of future results.  Facebook, LinkedIn, Twitter,  Instagram.

 

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HJ Sims Market Commentary: Habits of Excellence

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A number of poisons and toxins found on earth or synthetically derived, when administered in a certain dose, cause swift and deadly harm. Financial analysts have been assessing the scale of Washington’s response to the toxic impacts of COVID-19 on the economy.

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HJ Sims Market Commentary: Dose and Delivery

HJ Sims Logo

A number of poisons and toxins found on earth or synthetically derived, when administered in a certain dose, cause swift and deadly harm. Financial analysts have been assessing the scale of Washington’s response to the toxic impacts of COVID-19 on the economy.

Continue reading

An Investment Opportunity: LifeSpire of Virginia

Lifespire of Virginia Logo
Lifespire of Virginia logo

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

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

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

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

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

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

About the Bonds

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

Project

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

Security

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

 Key Financial Covenants

  • 1.20x Debt Service Coverage Ratio; tested annually
  • 120 Days Cash on Hand; tested semi-annually
  • Event of Default if DSRC is below 1.00x for two consecutive fiscal years

We are currently accepting indications of interest for these tax-exempt bonds with an expected pricing the week of August 2, 2021, and anticipated settlement during the week of August 16, 2021. For more information including risks, please read the Preliminary Official Statement in its entirety. If you have interest in purchasing these bonds, please contact your HJ Sims financial professional as soon as possible.

LEARN MORE
888.978.1754

*Subject to change

No dealer, broker, salesperson, or other person has been authorized to give any information or to make any representation other than those contained in the Preliminary Official Statement and, if given or made, such other information or representation should not be relied upon as having been authorized by the Issuer, the Borrower, or the Underwriters. The information set forth herein has been obtained from the Issuer, Borrower, and other sources that are believed to be reliable, but is not guaranteed as to accuracy or completeness by, and is not construed as a representation of, the Underwriters. The information contained herein is subject to change without notice. Under no circumstances shall this constitute an offer to sell or solicitation of an offer to buy, nor shall there be any sale of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. Any offering or solicitation will be made only to investors pursuant to the Preliminary Official Statement, which should be read in its entirety. Investments involve risk including the possible loss of principal. HJ Sims is a member of FINRA and SIPC, and is not affiliated with Virginia Baptist Homes, Inc.

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

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.

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HJ Sims Partners with Westminster Village as Investment Bank and Swap Advisor Helps Community Accomplish a Refinancing

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.

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