An Exclusive Investment Opportunity: Searstone 2021

Searstone Logo

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

Searstone Logo

$263,630,000*
PUBLIC FINANCE AUTHORITY

Revenue and Refunding Bonds
Searstone CCRC Project

Series 2021A Revenue Bonds $104,850,000*
Series 2021B-1 Entrance Fee Principal Redemption Bonds $36,310,000*
Series 2021B-2 Entrance Fee Principal Redemption Bonds $32,240,000*
Series 2021C Taxable Entrance Fee Principal Redemption Bonds $5,315,000*
Series 2022A Forward Delivery Revenue Bonds $8,920,000*
Series 2023A Forward Delivery Revenue Bonds $75,995,000*

HJ Sims is pleased to serve as sole underwriter for Samaritan Housing Foundation, Inc., d/b/a Searstone Retirement Community, a life plan community located in Cary, North Carolina. The Community presently consists of 169 one- and two-bedroom independent living units, including 131 apartment-style, and 38 homes. Amenities are centralized in their “Clubhouse”, and include dining venues, indoor swimming pool, fitness and exercise area, spa/salon, game room, multi-purpose ballroom, and an art studio. Searstone also has gardens, walking trails and an approximately 16-acre lake.

Searstone’s healthcare services are delivered in Brittany Place, a standalone building on campus. Following a recent expansion financing completed in 2018 by HJ Sims, there are 14 assisted living units and 25 skilled nursing units. Pursuant to North Carolina Certificate of Need regulations, only residents from independent living may transfer to these areas, no direct admissions to healthcare are allowed.

The Highview at Searstone project will include 152 one- and two-bedroom independent living units, all under one roof. A new core of common amenities will be included in this building, which includes multiple dining venues, a large multipurpose room, and various gathering spaces for residents. In addition, the project includes substantial update to outdoor spaces throughout the community. To accommodate the significant increase in residents, Brittany Place is also being expanded as part of the project. In total, 53 new healthcare units are being constructed, including 14 specialized memory care units, a service line that Searstone does not currently offer. In addition to the memory care, the scope includes 15 assisted living and 24 skilled nursing units.

HJ Sims has been working with Searstone since 2012, before they opened in late 2013 financing the start-up. Now, Searstone is ready to start their important expansion project called “The Highview at Searstone” to accommodate growing market demand in the community. To learn more about the history of the Searstone financings with HJ Sims, please read about the previous case studies in their entirety:

About the Bonds

  • Series 2021A
    • $104,850,000*
    • Revenue Bonds
    • Bonds are exempt from Federal Income Tax
    • Minimum denominations of $25,000; accredited investors and QIBs only
    • Interest will be payable on June 1 and December 1 of each year, commencing June 1, 2022
    • First principal payment: June 1, 2027
  • Series 2021B-1
    • $36,310,000*
    • Entrance Fee Principal Redemption Bonds
    • Bonds are exempt from Federal Income Tax
    • Minimum denominations of $25,000; accredited investors and QIBs only
    • Interest will be payable on June 1 and December 1 of each year, commencing June 1, 2022
    • First principal payment: January 1, 2025
  • Series 2021B-2
    • $32,240,000*
    • Entrance Fee Principal Redemption Bonds
    • Bonds are exempt from Federal Income Tax
    • Minimum denominations of $25,000; accredited investors and QIBs only
    • Interest will be payable on June 1 and December 1 of each year, commencing June 1, 2022
    • First principal payment: July 1, 2024
  • Series 2021C
    • $5,315,000*
    • Entrance Fee Principal Redemption Bonds
    • Taxable Bonds
    • Minimum denominations of $25,000; accredited investors and QIBs only
    • Interest will be payable on June 1 and December 1 of each year, commencing June 1, 2022
    • First principal payment: July 1, 2024
  • Series 2022A
    • $8,920,000*
    • Refunding Revenue Bonds
    • Delivery of bonds on or about March 3, 2022
    • Forward delivery Bonds are exempt from Federal Income Tax
    • Minimum denominations of $25,000; accredited investors only
    • Interest will be payable on June 1 and December 1 of each year, commencing June 1, 2022
    • First principal payment: June 1, 2023
  • Series 2023A
    • $75,995,000*
    • Refunding Revenue Bonds
    • Delivery of bonds on or about March 3, 2023
    • Forward delivery Bonds are exempt from Federal Income Tax
    • Minimum denominations of $25,000; accredited investors only
    • Interest will be payable on June 1 and December 1 of each year, commencing June 1, 2023
    • First principal payment: June 1, 2024

Use of Bond Proceeds

Project

  • Financing capital expenditures, including
    • Costs relating to the expansion of the continuing care retirement community known as Searstone, specifically, an independent living and healthcare expansion project, The Highview at Searstone
    • The modification, improvement, or enhancement of certain infrastructure serving the Searstone Community 
  • Refunding the Series 2020A (Tax-Exempt) and Series 2020B (Taxable) Revenue Bonds 
  • Funding capitalized interest on the Series 2021 Bonds
  • Funding a portion of the Parity Debt Service Reserve Fund
  • Funding the 2021B-C Debt Service Reserve Fund
  • Paying a portion of the costs of issuing the Series 2021 Bonds
  • The Series 2022A Bonds will refund the outstanding Series 2016 Bonds
  • The Series 2023A Bonds will refund the outstanding Series 2017 Bonds

Security

  • Secured by interest in improvements to be constructed and assets of the Corporation,
  • Secured by a gross revenue pledge,
  • Secured by debt service reserve funds,
  • Secured by assignment of all marketing, development, management and construction contracts.

 Key Financial Covenants

  • 1.10x Debt Service Coverage Ratio; tested annually through 2027 and 1.20x Debt Service Coverage Ratio; tested annually from 2028 thereafter
  • 150 Days Cash on Hand/Liquidity Covenant; tested semi-annually
  • Marketing Covenant tested quarterly beginning with 78% at 12/31/21 rising to 90% by 6/30/24 or approximately 12 months after opening
  • Occupancy Covenant tested quarterly beginning one full quarter after opening or rising to 90% in 4 years
  • Cumulative Cash Operating Loss Covenant: testing to begin the full fiscal quarter following the issuance of the Certificate of Occupancy and ends 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 18, 2021, and anticipated settlement during the week of November 15, 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
888.841.3871

*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 Searstone Retirement Community.

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.

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

The FBI Criminal Investigative Division and the United States Securities and Exchange Commission’s Office of Investor Education and Advocacy (OIEA) warn of fraudsters

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

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

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

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

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

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

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

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

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

Watch Out for Red Flags             

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

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

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

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

FINRA staff issued an article about imposter schemes.

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

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

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 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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