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 | [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.

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An Exclusive Investment Opportunity: Broadview at Purchase College

Broadview at Purchase College Logo

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

Broadview at Purchase College Logo

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

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

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

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

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

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

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

Learning Commons Entrance Rendering; subject to change

Reach out and connect with Broadview.

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

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

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

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

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

About the Bonds

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

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

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

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

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

Use of Bond Proceeds

Project

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

Security

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

 Key Financial Covenants

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

We are currently accepting indications of interest for these tax-exempt bonds with an expected pricing the week of October 25, 2021, and anticipated settlement during early November. For more information including risks, please read the Preliminary Official Statement in its entirety. If you have interest in purchasing these bonds, please contact your HJ Sims financial professional as soon as possible.

LEARN MORE
888.818.1371

*Subject to change

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

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

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

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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 | [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.

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Benedictine Health System (July 2021)

Benedictine Logo

Benedictine Health System, a Minnesota nonprofit corporation, is a Catholic healthcare system that provides long-term care services, congregate housing, assisted living, rehabilitation services, and other healthcare and social services. Benedictine owns, or has a controlling interest in, 23 nursing facilities with 1,815 licensed beds and 26 senior housing with services facilities with 1,890 units in five states.

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HJ Sims forges a new stage in the world of investments

Raul Escudero, Managing Director, HJ Sims Puerto Rico said the firm is looking for young talent interested in forging a career in the investment world.

Escudero believes that the local economy shows encouraging signs and proposes to create a new strain of financial advisors on the island.

Read more in EL Neuvo Dia.

HJ Sims Advises on Poydras Homes Expansion Project

HJ Sims announced it closed $23,340,000 in financing for Poydras Homes, a continuing care retirement community in New Orleans, Louisiana.

The CCRC includes 64 private nursing care beds, all of which will be replaced with the first certified Green House project in the state in two three-story buildings along with 14 additional assisted living units.

Read more in Skilled Nursing News.

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 | [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.

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