HJ Sims Assists Elwyn Secure Replacement $45 million Taxable Credit Facility


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

HJ Sims Assists Elwyn Secure Replacement $45 million Taxable Credit Facility

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 June 2021 refinancing for $45,000,000 for Elwyn, the oldest and largest not-for-profit provider of support, treatment and education to children and adults with intellectual and developmental disabilities, autism and related behavioral health issues in the U.S.

Headquartered in Media, PA, Elwyn delivers education, residential and community-based treatment, and vocational training programs to more than 20,000 individuals in California, Delaware, New Jersey, Pennsylvania, Rhode Island, Maine, Massachusetts, North Carolina, and Virginia. Elwyn generates approximately $400 million in annual revenue and employs 3,500+. 

Elwyn engaged Sims in late 2020 to identify and implement a replacement credit facility and a new commercial banking relationship. Elwyn was executing a variety of initiatives pre-COVID19, including:

  • Implementing financial turn-around plan
  • Hiring a new CEO
  • Shifting reimbursement methodology with overall enhanced organizational revenue cycle management
  • Modernization of information technology systems
  • Integration of a behavioral services acquisition program and real estate holding evaluation
  • Prioritization and selective monetization of non-core real estate holdings

Elwyn faced COVID-19 related challenges, including reduced/shifted programming and challenged staffing availability. Elwyn effectively continued the transition, resulting in improved profitability along with significant increases in cash flow, which was applied to build liquidity along with a significant pay-down on its outstanding line of credit.

Sims conducted a comprehensive bank solicitation seeking a $45 million taxable credit facility, comprised of a $30 million line of credit and letters of credit for up to $15 million. The facility is secured by a pledge of gross revenues and a mortgage on Elwyn’s main campus on parity with Elwyn’s $56 million of outstanding tax-exempt bonds and tax-exempt/taxable bank debt.

Elwyn opted to combine participation of two new banking partners, with Key Bank providing up to $30 million and Bank United providing up to $15 million. Among the highlights of the new facility are interest rate denominated in SOFR (Secured Overnight Funding Rate) reflective of the upcoming transition from LIBOR as the industry benchmark interest rate; competitive interest rate pricing along with up-front and ongoing fees; integration with Elwyn’s outstanding long-term debt related to debt security and covenants; and expedited closing.

The closing represents an attractive replacement to Elwyn’s prior credit facility, and provides a reduced loan credit spread by approximately 75 basis points with liberalized reporting covenants. Sims was honored to play a role and to continue a 30-year banking relationship with Elwyn.

“We were fortunate to have Jim Bodine and Siamac Afshar shepherd us through the refinancing of our short-term line of credit in FY 2020. This represented a major turning point for Elwyn. Sims facilitated the process during COVID-19 under extraordinary circumstances. The team was professional, experienced and highly competent. Exactly what we needed, precisely when we needed it. We will continue to use Sims for similar activity in the future, post turnaround, as we return to strategic planning and growth,” Charles McLister, CEO, Elwyn.

Financed Right® Solutions—Jim Bodine: 267.360.6245 | [email protected] or Siamac Afshar: 276.360.6250 | [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, TwitterInstagram.