Some Changes Made for COVID Will Stick Around, Say Seniors Housing Executives

There are two vaccines for COVID-19 awaiting approval by the U.S. Food and Drug Administration, signaling that there is an end to the pandemic on the distant horizon. However, the impact of the outbreak on the seniors housing industry may be long-lasting.

A group of the industry’s top brass recently suggested that many of the changes made to adapt to the virus may in fact be permanent, and operators should prepare for this.

Read more in Seniors Housing Business.

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

FOR IMMEDIATE RELEASE             

November 23, 2020

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

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

FAIRFIELD, CT– HJ Sims (Sims), a privately held investment bank and wealth management firm founded in 1935, is pleased to announce the successful closing of an October 2020 refinancing and capital projects financing in the amount of $77,605,000 for John Knox Village (JKV), a life plan community for age- and income-qualified residents in Pompano Beach, FL.

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

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

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

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

Financed Right® Solutions—Aaron Rulnick: 301-424-9135, [email protected] |

Melissa Messina: 203.418.9014, [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 Completes Third Financing for Client, Refinances Outstanding Debt, Generates Significant Interest Rate Savings

FOR IMMEDIATE RELEASE             

October 29, 2020

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

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

FAIRFIELD, CT– HJ Sims (Sims), a privately held investment bank and wealth management firm founded in 1935, is pleased to announce the successful closing of a September 2020 financing in the amount of $77,000,000 for Casa de las Campanas (Casa), a Life Plan Community in San Diego, CA. Casa is managed by Life Care Services, and LCS Development serves as the developer.

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

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

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

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

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

Financed Right® Solutions—Aaron Rulnick: 301-424-9135, [email protected] |

Brady Johnson: 949-558-8297, [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 Advises Presbyterian Villages of Michigan on Financing Independent Living Rental Expansion Project

HJ Sims Logo

FOR IMMEDIATE RELEASE             

October 15, 2020

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

HJ Sims Advises Presbyterian Villages of Michigan on Financing Independent Living Rental Expansion Project

FAIRFIELD, CT– HJ Sims (Sims), a privately held investment bank and wealth management firm founded in 1935, is pleased to announce the successful September 2020 financing in the amount of approximately $38.18 million for Presbyterian Villages of Michigan (PVM), an award-winning non-profit, aging services network assisting people of all faiths and diverse communities across MI since 1945.

Sims completed its first financing with PVM in 2015, serving as underwriter for PVM’s Series 2015 bonds. Since 2015, Sims has continued to provide PVM with advisory services for planning future capital expansion projects, monitoring debt capacity and analyzing the obligated group structure.

In 2002, PVM acquired land immediately adjacent to its Village of East Harbor campus for an expansion project. In 2018, The Village of East Harbor completed a new Health and Wellness Center. The current project being financed comprises the final phase of the Health and Wellness Center project, and a new independent living rental expansion project known as Harbor Inn. The Harbor Inn campus will include 12 rental single-level ranch homes, 36 rental independent living units, and a three-story apartment building, encompassing 60 independent living units.

PVM’s board, based on analysis provided by Sims, decided to absorb the Harry & Jeannette Weinberg Green Houses at Rivertown Neighborhood (Weinberg) into the Obligated Group, in addition to adding Harbor Inn to the Obligated Group. Sims worked with PVM and Fitch Ratings to secure a “BB” rating for the new bond issuance, and existing Series 2015 bonds. Weinberg is a 501(c)(3) designated, MI non-profit corporation located in Detroit. PVM has a Use Agreement with PACE Southeast MI, a joint venture of Henry Ford Health System and PVM, for the exclusive use of the Weinberg. Absorbing Weinberg into the Obligated Group allowed PVM to refinance the Weinberg Green Houses’ outstanding CDFI debt as part of the 2020 tax exempt bond financing.

The financing successfully closed on September 30, consisting of $18.18 million of Series 2020A bonds underwritten by Sims, and $20 million Series 2020B direct placement draw-down bonds purchased by Huntington Public Capital Corporation.

The Series 2020B bonds were issued in a floating-rate mode and hedged with a forward-starting SWAP beginning at the end of the draw period, and cancellable in five years, as well as a seven-year final maturity matching the loan tenor. The projected combined cost of capital of the 2020A and 2020B bonds is 3.48%.

“Following up on the 2015 restructuring and financing, HJ Sims went back to work with PVM’s Board and management leadership to provide key guidance to PVM’s next steps in expanding and strengthening its Obligated Group, resulting in the 2020 restructuring and financing, remarkably during COVID-19. Sims provided excellent leadership to the financing team. PVM looks forward to working with our partners at Sims as we immediately explore other financing needs to expand and reposition our service offerings,” Said Brian Carnaghi, SVP of Finance and Business Development, CFO, Treasurer, PVM.

Financed Right® Solutions—Aaron Rulnick: [email protected], 301-424-9135 | Patrick Mallen: 301-448-7111,  [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.

An Exclusive Investment Opportunity: John Knox Village

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

$72,480,000*
City of Pompano Beach, Florida
Tax-exempt Revenue and Revenue Refunding Municipal Bonds
Series 2020
(John Knox Village)

HJ Sims is pleased to serve as the sole underwriter for John Knox Village of Florida, Inc. (John Knox) is a 501(c)(3) corporation incorporated and existing under the laws of the State of Florida. John Knox owns and operates a Life Plan Community (LPC) located on approximately 65 acres in the City of Pompano Beach, Broward County, Florida. John Knox has grown from a small retirement community, consisting of a three-story building and 24 triplexes surrounding a lake, to the second largest CCRC in the State, and is comprised of 654 independent living units with various common areas; 62 assisted living units and associated common areas; and 194-bed skilled nursing suites (total 912 units).https://hjsims.com/johnknoxvillage

About the Bonds

  • Series 2020
    • $72,480,000*
    • Rated “A- Negative Outlook“ by Fitch Ratings
    • Tax-exempt from Federal Income Tax
    • Minimum denominations $5,000

 Use of Proceeds

  • Campus improvements, including the development of a community pavilion that houses a performing arts center, dining and other amenities
    • $41.5mm in project costs
      • $36.16mm in Pavilion Project costs
      • $5.4mm reimbursement in capital expenditures previously incurred
    • Refunding of $19.075mm in outstanding Series 2010 Bonds
    • Repayment of $12.2mm Line of Credit
    • Fund 20 months’ of Capitalized Interest
    • Fund a Debt Service Reserve

Security

  • Revenue Pledge
  • First Mortgage
  • Debt Service Reserve Fund

Key Financial Covenants

  • Debt Service Coverage Ratio – 1.10x tested on an annual basis
  • Days Cash on Hand – 100 days tested on an annual basis
  • Additional Debt Test
  • Limitations on Transfers

We are currently accepting indications of interest for these tax-exempt revenue bonds with an expected pricing week of October 19, 2020, and anticipated settlement week of October 26, 2020. 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 advisor, as soon as possible or call 877.577.3364.

LEARN MORE
877.577.3364

*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 John Knox Village.