Taxable Fixed-rate Advance Refunding and Tax-exempt Expansion Funding Allows for Streamlined Capital Structure and Continued Low-cost Growth

FOR IMMEDIATE RELEASE             

October 22, 2020

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

Taxable Fixed-rate Advance Refunding and Tax-exempt Expansion Funding Allows for Streamlined Capital Structure and Continued Low-cost Growth

FAIRFIELD, CT– HJ Sims (Sims), a privately held investment bank and wealth management firm founded in 1935, is pleased to announce the successful September 2020 financing in the amount of $107,360,000 for Presbyterian Retirement Communities (PRC) d/b/a Westminster Communities of Florida, and its affiliates, which is comprised of ten life plan communities located throughout Florida.

With a history of successfully acquiring and turning around financially strained communities, PRC acquired Westminster St. Augustine (f/k/a Glenmoor) out of bankruptcy in October 2017. Under PRC’s leadership, Westminster St. Augustine achieved a successful rebound on an accelerated basis, and PRC sought options to release PRC from its support obligations, as well as to refinance its 2010B variable rate bonds and fund forthcoming capital projects.

Sims structured long-term taxable and tax-exempt bonds around the existing debt service, achieving a blended True Interest Cost of 3.87% and successfully underwriting the bonds without a funded Debt Service Reserve Fund. Sims also helped to eliminate interest-rate risk and LIBOR exposure, streamline PRC’s debt and organizational structure, and maintain an “A-” Fitch Rating.

By borrowing $50 million for forthcoming expansion projects at near historically low fixed interest rates, PRC is well-positioned for continued growth among its existing campuses. The ability to fund growth with low-cost debt, instead of cash, will enable PRC to strengthen its liquidity position in the months ahead, which is especially paramount in the recent COVID environment.

“Working with the Sims’ team on this bond issuance enabled us to achieve numerous financing objectives with ease. The low cost of capital far exceeded our expectations, while the unique and tailored structure enhances the stability and flexibility of our overall debt profile,” said Hank Keith, Chief Financial Officer, PRC.

Financed Right® Solutions—Melissa Messina: 203-418-9015, [email protected] | Kerry Moynihan: 407-313-1702, [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.

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