LANCASTER INDUSTRIAL DEVELOPMENT AUTHORITY
Health Center Revenue Refunding Bonds
Landis Homes Retirement Community
HJ Sims is pleased to serve as sole underwriter for tax-exempt Series 2021 revenue refunding bonds on behalf of Landis Homes, located in Lititz, PA. Landis Homes is a not-for-profit retirement community which is home to 875+ persons living in cottages, apartments, hybrids, suites, personal care and healthcare on a 114-acre campus surrounded by
Lancaster County farmland.
Landis Homes is an affiliate of the Landis Communities, which started in the early 1960s when Eastern Mennonite Board of Missions and Charities (now EMM) began exploring how they might develop a community for retired mission workers, pastors and others. Landis Communities is the location of choice for those who follow the Mennonite faith tradition. There is a very strong connection to the local churches and almost 55% of the residents come from the Mennonite faith. Most Mennonite Communities in Lancaster County do not have a similar representation.
Landis Communities is committed to creatively serving the diverse needs and interests of older adults. These needs come from a cross-section of races, ethnicities, and socioeconomic status.
About the Bonds
- Series 2021
- Fitch Rated “BBB-” Stable Outlook
- Bonds are exempt from Federal Income Tax and exempt from State of Pennsylvania Income Tax
- Denominations of $5,000; no transfer restrictions
- Interest will be payable on January 1 and July 1 of each year, commencing January 1, 2022
- First principal payment: July 1, 2023
- Refund outstanding bank debt
- Expected renovation and improvement of facilities, independent living areas and housing units.
- Secured by Master Trust Indenture
- Includes pledge of Gross Receipts of the Obligated Group and mortgage of substantially all real estate of the Borrower
- 50% Funded Debt Service Reserve Fund
Key Financial Covenants
- 1.20x Debt Service Coverage Ratio; tested annually
- 120 Days Cash on Hand; tested semi-annually
- Event of Default if DSRC is below 1.00x for two consecutive fiscal years
We are currently accepting indications of interest for these tax-exempt bonds with an expected pricing the week of September 13, 2021, and anticipated settlement during the week of September 27, 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 Landis Homes