The Legacy Senior Communities, Inc. Case Study (July 2025)

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HJ Sims successfully structured and
executed a $72.54 million refinancing of existing bank debt for The Legacy Senior Communities, 
providing stable, fixed-rate debt service for its Legacy at 
Midtown Park community 
$72,540,000 | Dallas | July 2025

Partnered Right®

The Legacy Senior Communities, Inc. (“Legacy”), a Dallas-based Jewish-sponsored nonprofit, has a long-standing mission to serve seniors through a continuum of care—including high-quality healthcare, wellness, and choice. The organization owns and operates The Legacy at Midtown Park (“LMP”), a rental and entrance fee life plan community in the heart of Dallas; The Legacy at Willow Bend (“LWB”), an entrance fee life plan community in Plano, TX; and Legacy at Home, a home-health provider. HJ Sims has partnered with Legacy over many years, previously underwriting LMP’s Series 2018 bonds and LWB’s Series 2016 bonds.

With LMP’s Series 2018B bank debt maturing in August 2025 and participating banks seeking to reduce their exposure to the senior living sector, HJ Sims identified an opportunity to replace the variable-rate bank debt with stable, long-term financing while also integrating Legacy at Home into the Obligated Group to enhance operational cash flow.

Structured Right®

With the borrower structure optimized, HJ Sims designed a comprehensive plan of finance centered around the issuance of $72,540,000 in Retirement Facility Revenue Bonds (Series 2025), facilitated by the New Hope Cultural Education Facilities Finance Corporation. The structure included refinancing the Series 2018B Note, funding capital improvements, adding to the debt service reserve fund, and covering issuance costs.

The Series 2025 Bonds were wrapped around the existing Series 2018A Bonds to achieve level debt service and minimize the overall increase in maximum annual debt service. The structure also included two years of interest-only payments to build liquidity and allowed Legacy to replace its existing Guaranty with a limited Liquidity Support Agreement that includes provisions for phased release based on financial performance.

Executed Right®

HJ Sims placed a strong emphasis on proactive communication with existing bondholders in advance of the Series 2025 refinancing. Recognizing the importance of transparency and continuity, HJ Sims initiated a series of detailed public briefings to ensure bondholders were fully informed about the refinancing objectives, bond structure, and anticipated impacts. These discussions helped build confidence in the transaction and addressed key questions related to covenant compliance and future debt service.

The bonds were priced on July 7, 2025 during a volatile interest rate environment, which demanded careful timing and pricing strategy to maintain affordability for the borrower. HJ Sims provided hands-on support throughout, including scenario modeling, covenant stress testing, and board communication to build consensus for the nonrated offering. Despite these hurdles, the financing closed on schedule, with favorable terms that positioned Legacy for long-term success.

Financed Right®

Closed on July 23, 2025, the Series 2025 bonds delivered strategic advantages that support Legacy’s long-term mission and operational goals, including:

  • Eliminate interest rate risk by utilizing long term fixed rate debt to refinance the variable rate bank debt
  • Minimize the increase in maximum annual debt service by wrapping the refunding debt around the existing debt
  • Enhance short term liquidity by structuring two years of interest only payments and funding capital improvements
  • Reduce support required by Legacy Senior Foundation 

Aaron Rulnick

203.418.9008

James Rester

214.252.8223

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Testimonials may not be representative of the experience of other clients. Past performance is no guarantee of future results