Seniors Housing Business

FEB-MAR 2018

Seniors Housing Business is the magazine that helps you navigate the evolution of the seniors housing industry.

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10 Seniors Housing Business n February-March 2018 and 2013, with a maturity on the new bonds of 2048. Presby's previously purchased land adjacent to its Rydal Park cam- pus for a new independent living project: Rydal Waters. Refinancing the outstanding bank debt freed up capacity among Presby's exist- ing bank relationships to finance the Rydal Waters project once it completes its pre-development and pre-marketing processes. The 2017 bonds eliminated Pres- by's variable rate interest exposure, provided annual cash flow savings, boosted debt service coverage and leveled out and extended future debt service on a fixed-rate basis. The Ensign Group receives $112 million HUD refinancing for 17-property portfolio Mission Viejo, Calif. — The En- sign Group Inc. (NASDAQ: ENSG), the parent company of the Ensign group of skilled nursing, rehabili- tative care, home health, hospice and assisted living companies, has completed a $112 million refinanc- ing of a portfolio of properties. The fixed-rate loans have an amortization schedule between 30 and 35 years, and are secured by mortgages on 17 of the 63 proper- ties owned by Ensign subsidiaries. Jason Dopoulos of Lancaster Pol- lard Mortgage Co. LLC arranged the loans, which are insured by the Department of Housing and Urban Development (HUD). Loan proceeds will be primarily deployed to pay down previously drawn amounts on Mission Viejo- based Ensign's revolving line of credit. "These new long-term, fixed-rate borrowings represent an impor- tant pillar in our capital structure, providing us liquidity on a portion of the real estate we own during a period of historically low interest rates," says Suzanne Snapper, En- sign's chief financial officer. In addition to refinancing exist- ing borrowings, the proceeds of the HUD-insured debt will be used to fund acquisitions; renovate and upgrade existing and future facili- ties; cover working capital needs; and for other business purposes. Finance Ziegler closes $94.7 million bond refinancing for CCRC in Texas Austin, Texas — Ziegler has arranged $94.7 million in bond financ- ing for Longhorn Village, a 310-unit continuing care retirement com- munity in Austin. The alumni association of the University of Texas sponsors the nonprofit community, which is located on 55 acres. The property features 214 entrance-fee independent living units, 20 assisted living suites, 16 memory support suites and 60 skilled nursing beds. Originally, Brazos Presbyterian Village Inc. was set to acquire Longhorn Village. However, the recently implemented Tax Cuts and Jobs Act eliminated advance-refunding transactions, which caused the buyer and seller to reassess the proposed deal. The bond refi- nancing will allow the two parties to revisit the transaction in six months, with Brazos holding a purchase option. Proceeds from the bonds will advance refund $85.1 million of Longhorn Village's 2012 bonds, as well as fund $2 million for rou- tine capital expenditures and a debt-service reserve fund. The refinancing provides significant interest savings, according to the borrower. Sponsored by the alumni association of the University of Texas, Longhorn Village is located on a 55-acre campus in Austin. Do you know that awesome feeling when you exceed budget every month, are always 95% occupied and always in covenant compliance? Me neither. Choose experience. Choose awesome. Choose MidCap. visit us @ Eastern Region Lawrence Brin (301) 841-6484 Central Region David Sharp (312) 488-4524 Western Region Jason McMeen (312) 288-8603 FHA Group Head Brett Patrick (303) 757-2148

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