HJ Sims completes third financing for client to secure long-term bank commitment to refinance all of its outstanding debt generating significant interest rate savings.
Continue readingCasa de las Campanas Case Study
Westminster Communities of Florida Case Study
HJ Sims successfully completes taxable fixed-rate advance refunding and tax-exempt expansion funding allow for streamlined capital structure and continued low-cost growth
Continue readingPresbyterian Villages of Michigan Case Study
HJ Sims advises Presbyterian Villages of Michigan on Financing Independent Living Rental Expansion project, various refinancings, and adding new members to the Obligated Group.
Continue readingToby and Leon Cooperman Sinai Residences of Boca Raton
Federation CCRC Operations Corp. d/b/a Toby and Leon Cooperman Sinai Residences of Boca Raton is an existing life plan community, managed by Life Care Services (“LCS”), which consists of approximately 234 independent living units, 48 assisted living units, 24 memory-support units, 60 skilled nursing beds and related common amenities.
Continue readingThe Philadelphia Protestant Home
HJ Sims Secures $6.5 million Additional Debt Financing for Capital Improvements for The Philadelphia Protestant Home.
Continue readingStoneBriar at Burcham Hills
HJ Sims helps Burcham Hills secure a $32 million construction loan for their StoneBriar independent living expansion that introduces an entrance fee independent living option at the East Lansing, MI community.
Continue readingEncore on the Lake
HJ Sims completes innovative dual bank senior – supplemental debt financing for Encore on the Lake. This new middle market independent living campus is a planned 80-unit Independent Living Community to be constructed on a 6.8 acre site in North Strabane Township, Washington County, PA.
Continue readingSearstone
HJ Sims successfully completes $6.6 million of Tax-exempt and Taxable Revenue Bonds to position Samaritan Housing Foundation, Inc., d/b/a Searstone Retirement Community, a life plan community located in Cary, NC, for accretive Phase II.
Continue readingLinks Funding II
HJ Sims Provides Acquisition Financing for a Skilled Nursing Healthcare Community in California
Continue readingMerrill Gardens VI Series II and III
HJ Sims raises additional capital for investment in development fund for Merrill Gardens. HJ Sims secured the capital for the Series III securities in a turbulent market amidst concerns of COVID-19 to fulfill its investment and meet the timing needs of the Fund.
Continue readingMorningside Ministries
Morningside Ministries (“Morningside”) is a Texas nonprofit organization founded in 1959 serving San Antonio seniors in two communities: Morningside at Menger Springs, a 34 acre community in Boerne, Texas
Continue readingVoralto Living
Voralto Living, along with its affiliates (“Voralto”), is a 42-year-old best in class senior living owner, operator, and developer whose leadership team has a combined 120+ years of experience in the senior living industry.
Continue readingMRC Manalapan
HJ Sims secures financing for start-up assisted living and memory care community in unique for-profit/not-for-profit collaboration. MRC Manalapan is a newly formed for-profit senior living developer, consisting of two principals, including LV Development.
Continue readingLenbrook
Lenbrook is an existing life plan community which consists of 350 independent living residences located in two adjoining towers, the Brookhaven Tower and the Lenox Tower, and is located in Atlanta, Georgia.
Continue readingMagnolia Senior Living
Magnolia Senior Living is newly created company founded by Henry Orlinsky and Spencer Mandelbaum that focuses on providing excellent senior care in the most affordable way. Grace Manor at North Park.
Continue readingCaraday Healthcare
HJ Sims Provides $7.45 Million HUD PlusTM Loan for Texas SNF Portfolio Acquisition
Continue readingGenerations at Shalom Park
Generations at Shalom Park represents a collaboration between Shalom Park, a culturally Jewish mixed-use development in the Charlotte, North Carolina metro area, and Aldersgate Life Plan Services, Inc., a well-established Charlotte-based non-profit Methodist organization currently operating an existing life plan community and home care agency.
Continue readingLutheran Home at Moorestown
HJ Sims Assists in Sale of New Jersey Nursing Home for Long-Standing Client
Continue readingAsbury Communities
Asbury Communities Partners with HJ Sims again to Streamline its Capital Structure with its Pennsylvania and Maryland Obligated Groups
“Asbury Communities once again chose HJ Sims to represent us for a refinancing in Pennsylvania and Maryland for our callable debt. The Sims team was able offer solutions for both refinancings that exceeded our expectations. One of the refinancings was a public deal that came to the market at a difficult time. Sims presented a strategy that worked better than anticipated, and we were able to refinance our debt on superior terms. I would highly recommend working with Sims as they listened to our objectives, formulated a great plan, and executed on it. We couldn’t be happier with the results.”
– Andrew Jeanneret, Chief Financial Officer, Asbury Communities, Inc.
For more information on how Asbury’s Maryland and Pennsylvania Obligated Groups, please contact:
Partnered Right®
Asbury Communities, Inc. (“Asbury”), owns and operates life plan communities in Pennsylvania, Maryland, and Tennessee, as well as HUD Section 202 senior housing buildings, a foundation, and a for-profit technology consulting firm. All of the facilities that are included in its Pennsylvania and Maryland Obligated Groups are owned and operated by Asbury Atlantic, Inc. (“Atlantic”), a wholly-owned subsidiary of Asbury Communities.
Pennsylvania Obligated Group
Asbury’s Pennsylvania Obligated Group (the “Pennsylvania Obligated Group”) consists of two communities – Bethany Village Retirement Center (“Bethany Village”) located in Mechanicsburg, Cumberland County, Pennsylvania and Springhill (“Springhill”) located in Erie, Pennsylvania, both life plan communities (LPCs). Bethany Village consists of two campuses with an aggregate of 400 independent living units, 100 assisted living units and a 69-bed skilled nursing center and related amenities. Springhill has 158 independent living units, 35 personal care units and an 80-bed skilled nursing facility.
Maryland Obligated Group
Asbury’s Maryland Obligated Group (the “Maryland Obligated Group”) consists of two communities – Asbury Methodist Village (“AMV”), a LPC located in Gaithersburg, Montgomery County, Maryland, and Asbury Solomons Island (“Solomons”), a LPC located in Solomons, Calvert County, Maryland. AMV provides a continuum of living through 826 independent living apartments, courtyard homes and villas, 133 assisted living suites and 257 comprehensive care beds located in a health care unit that includes a post-acute care unit and a memory support special care unit. Solomons has 300 independent living apartments and cottages, 24 assisted living suites and a health care center containing 48 licensed skilled and intermediate nursing care beds.
Sims recently served as underwriter to Asbury in 2018 for its Maryland Obligated Group’s Series 2018 Bonds; a financing that provided $7.5 million of new money bonds for capital expenditures, while also achieving over $8.3 million in net present value savings for the Maryland Obligated Group.
Structured Right®
Pennsylvania Obligated Group
In the summer of 2019, HJ Sims was engaged again by Asbury Communities to facilitate the refinancing of the Pennsylvania Obligated Group’s outstanding Series 2010 Bonds and the Maryland Obligated Group’s outstanding Series 2009B Bonds. Asbury Communities also sought Sims’ partnership in modifying the support agreement between Asbury Communities and the Pennsylvania Obligated Group and restating their existing Master Trust Indenture to align it with the modernized terms from the Maryland Obligated Group’s Series 2018 Refunding Bonds. Sims served as Underwriter of the Series 2018 Bonds, and worked closely again with management of Asbury to facilitate their objectives of minimizing overall interest expense while attaining level debt service and maximum flexibility
Maryland Obligated Group
For the Maryland Obligated Group, Sims facilitated a request for proposals process to select a bank partner and negotiated a tax-exempt bank loan used to refinance the Series 2009B Bonds, and finance $5,000,000 in capital expenditures reimbursements made by Maryland Obligated Group in the ordinary course of business.
Executed Right®
Pennsylvania Obligated Group
In order to meet the strategic financing objectives of Asbury, Sims suggested a short-term forward commitment to reduce or eliminate the effects of negative arbitrage from a current refunding occurring within 90 days of an optional redemption date. Sims priced the Pennsylvania Obligated Group’s Series 2019 Bonds on November 7, 2019, and set closing on December 31, 2019 to eliminate negative arbitrage through the first optional redemption date of the Series 2009B bonds on January 1, 2020. By doing so, the Pennsylvania Obligated Group avoided nearly $600,000 of negative arbitrage between the pricing date and closing date, reduced the overall borrowing, and maximized savings. The structure for the Pennsylvania Obligated Group also included semi-annual sinking fund installments, call provisions that took into account the impact of the elimination of advanced refunding bonds, and restated the underlying master trust indenture documentation and support agreements.
Maryland Obligated Group
As part of the Maryland Obligated Group’s bank financing negotiations, Sims was able to procure a 4 year, fully amortizing loan matching the maturity of the Series 2009B Bonds at a swap rate of 2.226% and a 7 year, fully amortizing loan for the reimbursement of capital expenditures at a swap rate of 2.309%. This financing also effectively defeased the final series of bonds that had been issued under the Maryland Obligated Group’s original operating support agreement, opening the door for the complete elimination of the operating support agreement if the Maryland Obligated Group wanted to do so.
Financed Right®
Pennsylvania Obligated Group
For the Pennsylvania Obligated Group, the aggregate $59,480,000 Series 2019 Bonds are projected to generate nearly $850,000 of debt service savings annually through 2041 and over $1.2 million annually from 2042 to 2045 for an aggregate net present value savings of $15 million over the life of the bonds.
Maryland Obligated Group
For the Maryland Obligated Group, notwithstanding the $5 million additional funds borrowed, the financing resulted in a mere approximate $20,000 increase in maximum annual debt service and achieved Maryland Obligated Group’s goals. The implemented financing structure allows Asbury to achieve its objectives of minimizing overall interest expense while sustaining and improving debt service coverage metrics and providing maximum flexibility.
For more information on how Asbury’s Maryland and Pennsylvania Obligated Groups were Financed Right® by HJ Sims, please contact:
Testimonials may not be representative of the experience of other clients. Past performance is no guarantee of future results
Jewish Home Family
Jewish Home Family is a private not-for-profit corporation operating an integrated healthcare delivery system principally serving the residents of Bergen County, New Jersey. Jewish Home at Rockleigh has been operating the 180-bed Russ Berrie Home for Jewish Living since 2001 on a park-like 16 acre campus in the Rockleigh Township of Bergen County, New Jersey.
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