**This financing has been successfully closed. Please contact you advisor for any potential secondary market opportunities.**
$139,885,000*
City of Pompano Beach, Florida
Revenue Bonds (John Knox Village Project)
Series 2021
HJ Sims is pleased to serve as sole underwriter for John Knox Village, a Life Plan Community located on approximately 65-acres in Pompano Beach, FL. Incorporated in 1978 as a not-for-profit corporation, John Knox Village has been self-managed since the first units came online in 1973. Today, John Knox Village has grown to a community comprised of 644 independent living units with various common areas; 64 assisted living units and associated common areas; and 194-bed skilled nursing suites (total 912 units). After the completion of the Westlake Tower project, John Knox Village will add an additional 146 independent living units. Upon stabilization, John Knox Village’s campus will offer 790 independent living units and 1,058 units in total. Residents enjoy multiple indoor and outdoor dining venues, performing arts center, fitness center, arts studio, auditorium, artisan workshop and a resort-style pool and aquatics complex.
About the Bonds
- Series 2021, aggregate
- Estimated par amount: $139,885,000*
- Credit Rating: BBB (Fitch; Stable Outlook)
- Revenue Bonds
- Bonds are exempt from Federal Income Tax
- Minimum denominations of $5,000
- Series 2021A
- Estimated par amount: $89.9 million
- First interest payment: March 1, 2022
- First principal payment: September 1, 2030
- Final maturity: September 1, 2056 (average life of 27.8 years)
- Series A call schedule: 103% on 9/1/2027; DTP on 9/1/30
- Debt service reserve fund: Parity reserve with 2020 Bonds
- Series 2021B-1
- Tax-exempt Entrance Fee Principal Redemption Bonds
- Estimate par amount: $25.4 million
- Sized to 88% of Entrance Fee pool (anticipated redemption in January 2026)
- Stated maturity: September 1, 2029 (average life of 3.5 years)
- No debt service reserve fund
- Series 2021B-2
- Tax-exempt Entrance Fee Principal Redemption Bonds
- Estimated par amount: $24.6 million
- Sized to 50% of Entrance Fee Pool (anticipated redemption October 2024)
- Stated maturity: September 1, 2027 (average life of 2.7 years)
- No debt service reserve fund
Use of Bond Proceeds
Project
- Fund expansion project costs (146 Independent Living Units via a mid/high-rise tower)
- Fund additional campus projects
- Reimburse John Know Village for eligible project cost expenditures
- Fund capitalized interest
- Fund debt service reserve fund (Series 2021A only, parity with Series 2020 Bonds)
- Fund costs related to issuance
Security
- First mortgage
- Gross revenue pledge
- Assignment of project documents
- Assignment of residency agreements
Key Financial Covenants
- Expansion: Occupancy (through stabilization)
- Debt Service Coverage: 1.10x tested annually, reported quarterly
- Liquidity: 100 days cash tested annually
- Quarterly disclosure
We are currently accepting indications of interest for these tax-exempt bonds with an expected pricing the week of December 6, 2021, and anticipated settlement the week of December 21, 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.
*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 John Knox Village.