HJ Sims Provides Financing for Expansion for Jefferson’s Ferry; Completes Forward Delivery Bond Issue for Peconic Landing


December 10, 2020

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

HJ Sims Provides Financing for Expansion for Jefferson’s Ferry; Completes Forward Delivery Bond Issue for Peconic Landing

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 November 2020 financing in the amount of $88,975,000 for Jefferson’s Ferry, a CCRC (continued care retirement community) in Brookhaven, NY. In November 2020, Sims also closed a $22.3 million forward delivery bond issue as part of a December 2019 financing for Peconic Landing, a CCRC located in Peconic, NY.

Sims underwrote the initial construction bond financing in 1999 for Jefferson’s Ferry, followed by a refunding of this financing in 2006. For 2020, Jefferson’s Ferry’s Journey Toward Renewal project includes a comprehensive improvement and expansion of the residential and healthcare space. The project incorporates construction of a 20-unit building dedicated to assisted living residents with dementia, construction of 60 additional independent living apartments as extensions to the existing apartment buildings, and numerous improvements to the Community Center to enhance the residents’ lifestyle.

The financing was structured as two series of tax-exempt bonds with the long-term bond series featuring a 35-year final maturity and a 5-year call feature, providing future refunding flexibility. The short-term Entrance Fee Principal Redemption Bonds® (EFPRBs) are expected to be repaid within 3 years from entrance fees paid by new independent living residents. Principal amortization on the long-term bonds is deferred until after the existing debt matures in 2036. The bonds were rated BBB (Stable) by Fitch. The yield on the EFPRB’s was 1.75%, while the long-term bonds maturing in 2055 have a yield of 3.75%.

“We are so pleased to secure bond financing for our Journey Toward Renewal expansion and renovation project. The Sims’ team, led by Andrew Nesi, did an outstanding job of executing the transaction quickly in an uncertain market due to the COVID-19 pandemic and presidential election. Our long-term debt service costs came in under what we had projected and funds secured will provide the capital needs to reposition our community for the future. Job well done,” said Bob Caulfield, President/CEO of Jefferson’s Ferry.

HJ Sims Successfully Completes Forward Delivery Bond Issue for Peconic Landing

As part of a $24.3 million bond issue in December 2019 HJ Sims issued Forward Delivery bonds to secure favorable interest rates and debt service savings for long-standing client Peconic Landing. While Peconic Landing had a series of high interest rate bonds outstanding, tax law precluded a refunding of those bonds until the call date in 2020. Sims structured a series of bonds whereby the interest rate was fixed in 2019, but not “delivered” or closed until eleven months later.

Peconic Landing was one of the first CCRCs in the country to experience COVID-19. Sims worked with management on a robust disclosure plan to keep investors apprised of developments. The management team was at the forefront of implementing strict protocols to minimize the impact of the virus on residents and the organization benefitted from strong capital reserves and government assistance programs to weather the challenges.

Financed Right® Solutions—Andrew Nesi: 203.418.9057 |  [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.