**This financing has been successfully closed. Please contact you advisor for any potential secondary market opportunities.**
$60,370,000*
PENNSYLVANIA ECONOMIC DEVELOPMENT FINANCING AUTHORITY
$60,370,000* Series 2021 Long-Term Fixed Rate Bonds
(Pennsylvania Economic Development Financing Authority Revenue Bonds / Presbyterian Senior Living Project)
HJ Sims is pleased to serve as sole underwriter for Presbyterian Homes Obligated Group (the “Obligated Group”) consisting of: Presbyterian Homes, Inc.; Cathedral Village; Presbyterian Homes in the Presbytery of Huntingdon; The Long Community, Inc.; Quincy Retirement Community; and PHI Investment Management Services, Inc. (collectively, the “Obligated Affiliates”). The Obligated Affiliates own, operate, and manage 12 continuing care retirement communities, three stand-alone independent living facilities, and two stand-alone personal care homes – all located throughout Pennsylvania, Ohio and Delaware.
The Series 2021 bonds will (1) refund certain outstanding bank debt; (2) provide approximately $38MM in proceeds to fund certain capital improvements to the Communities; and (3) pay for costs of issuance.
The not-for-profit organizations that make up the obligated group are all Pennsylvania-based not-for-profit senior living communities, each of which are 501(c)(3) organizations.
Virtual Site Visits/Tours
Learn more about each of the Presbyterian Senior Living communities and locations throughout Pennsylvania, Maryland, Ohio, and Delaware.
About the Bonds
- Series 2021
- $60,370,000*
- Fitch Rated “BBB+” Stable Outlook, tax-exempt
- Bonds are exempt from Federal Income Tax and exempt from Commonwealth of Pennsylvania Income Tax
- Denominations of $5,000
- Interest will be payable on January 1 and July 1 of each year, commencing January 1, 2022
- First principal payment: July 1, 2022
- Final maturity: July 1, 2046
Project Highlights:
- The Obligated Affiliates are managed by PHI, a Pennsylvania non-profit organization, which is also the parent corporation of the Obligated Affiliates, among other entities. PHI is NOT a member of the Obligated Group
- The communities included in the Obligated Group have a total of approximately 1,558 independent living units, 506 personal care or assisted living units and 1,031 skilled nursing units among them.
- Secured by gross revenues and mortgage.
Security
- Revenue pledge
- Real estate pledge
Key Financial Covenants
- Debt service coverage ratio of 1.25x (tested quarterly)
- Reserve Ratio of 0.25 required (cash: debt), tested semi-annually.
- Event of Default if below 1.0x for one fiscal year
We are currently accepting indications of interest for these tax-exempt bonds with an expected pricing the week of June 21, 2021, and anticipated settlement during the week of July 14, 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. Investments involve risk, including the possible fluctuation of principal. Investments involve risk including the possible fluctuation of principal. Past performance is not indicative of future results. The purchase and sale of securities should be conducted on an individual basis considering the risk tolerance and investment objectives of each investor and with the advice of counsel of a professional advisor. HJ Sims is an independent financial services firm and is not affiliated with Presbyterian Senior Living, Presbyterian Homes Obligated Group or any of its related entities or any other organization referred to herein.