Wakefield Capital Management

  • Posted on

Sims Provides Subordinate Loan Financing for a Life Plan Community (CCRC) Acquisition

Partnered Right
  • Affiliates of Wakefield Capital Management, including an existing Sims client, successfully financed the acquisition of a for-profit CCRC in Ridgeland, MS
Structured Right
  • Sims’ underwriting met the needs of the client and the Senior Lender as well as HUD’s requirements for a future refinancing
Executed Right
  • A new entity was formed to issue taxable bonds that ultimately funded a portion of the acquisition alongside senior debt and equity
Financed Right
  • Sims privately placed $5,160,000 of corporate taxable bonds for the financing
Partnered Right

Sims was approached by affiliates of Wakefield Capital Management (“Wakefield”), an experienced investor in healthcare related real estate, to provide subordinate loan financing in connection with the acquisition by Wakefield of a 197 unit Life Plan Community (CCRC) in Ridgeland, Mississippi. Sims successfully financed a subordinate loan for $5.16 million to fund a portion of the acquisition.

Structured Right

There were several challenges associated with this financing:

  • Underwriting late-stage revised deal terms that would meet client needs and align with the bridge loan provided by the Senior Lender.
  • Creating a flexible debt structure that would allow Wakefield to meet its goal of maximizing a subsequent HUD financing.
  • Structuring the subordinate debt so that it could remain outstanding even after the HUD refinancing.

Sims created and funded a subordinate loan structure to accommodate Wakefield’s needs and HUD’s requirements.

Executed Right

A new entity, Wakefield Portfolio Funding I, LLC (the “Sims Issuer”), was formed to issue taxable bonds. The bonds were successfully sold to Sims’ high-net-worth, accredited investors through a private placement. Proceeds from the bonds were used by the Sims Issuer to fund the subordinate loan to Wakefield. The transaction was closed within 30 days of the initial mailing of the Placement Memorandum.

Financed Right®

The ability of Sims to quickly underwrite and then implement a subordinate debt structure met the needs of Wakefield as well as those of the Senior Lender. Sims’ track record and its access to high net worth customers, allowed Sims to quickly and efficiently raise the needed capital and close the financing. The flexibility and creativity of Sims’ bankers, along with the industry knowledge of its retail investors, resulted in another successful financing for a valued client.

Sims excels in filling the niches that allow an owner or developer to complete a transaction by providing custom financing such as mezzanine debt or preferred equity.

For more information, please contact Jeff Sands or Curtis King.