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.
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.