FOR IMMEDIATE RELEASE
April 25, 2022
CONTACT: Shauna Reilly, Chief Marketing Officer | 203-418-9043 | [email protected]
HJ Sims Triumphs in Closing USDA Financing for Evenglow’s $32 Million Expansion Project
FAIRFIELD, CT– HJ Sims (Sims), a privately held investment bank and wealth management firm founded in 1935, is pleased to announce the closing of a $32 million USDA-financed expansion project for Evenglow Lodge. In accordance with USDA-debt requirements, proceeds of the financing will be used for the construction of 76 replacement assisted living units, common space and other space used by the Health Center, as well as for the demolition of the existing assisted living structure.
Providing healthcare services to the community of Pontiac, Il since 1957, Evenglow has evolved into a senior living community delivering care from independent living through skilled nursing. In order to meet community needs for additional services, Evenglow sought to expand its footprint. The first phase consists of the construction of the replacement assisted living units, demolition of the current assisted living tower and constructing new common space. Phase two consists of the construction of 24 new independent living units. Phase one broke ground in 2021; phase two will begin construction in 2023.
Due to USDA’s prohibition on using this USDA program’s debt for independent living, Sims crafted a plan of finance which included USDA financing for the new assisted living building paired with bank financing for the new independent living units. The latter would use two distinct tranches, one entrance fee tranche and one long-term tranche, which would allow Evenglow to lessen its long-term debt liability. Furthermore, with low interest rates and long amortization available via the USDA financing, Sims worked with the USDA to include as much as was allowable into the USDA loan.
At 593 days after financing kickoff, Sims closed the $32,200,000 bank facility backed by approval received from the USDA. A draw-down bank loan will permit Evenglow to draw for construction costs on an as needed basis. Ultimately, the bank loan will be refinanced with a USDA vehicle which was locked-in at an interest rate of 2.25% and a term of 35-years, providing a capital structure which will lift the viability of the operating model and allow Evenglow to better serve the community with the benefit of a low cost of capital for years to come.
“After just stepping into my new role as CEO, the thought of handling this expansion financing was unsettling. Thankfully, Sims was there to help us successfully implement the financing that would reposition our organization for years to come. Sims thoroughly understood the process involved and made sure to provide extensive education, even after closing. Lynn and Brady took great care in ensuring that our team understood all of the financing components so we could march in-step. Working with Sims truly was a pleasure and I look forward to our partnership for years to come,” said Cindy Wegner, President and CEO of Evenglow Lodge.
Financed Right® Solutions
Lynn Daly: [email protected] or (312) 505-5688
Brady Richardson, [email protected], (443) 340-9980.
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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