Ziegler Completes Major Financing for Brazos Presbyterian Homes
In a significant financial achievement, Ziegler has successfully closed an $80,000,000 tax-exempt fixed rate bond issue, known as the Series 2025 Bonds, exclusively for Brazos Presbyterian Homes (BPH). This financing was facilitated through the New Hope Cultural Education Facilities Finance Authority, with the bonds receiving a 'BB+' rating (Stable) from Fitch.
Overview of Brazos Presbyterian Homes
BPH stands out nationally for its expansive reach and positive impact in the senior living sector, ranking 129th among the largest multi-site nonprofit senior living providers in the popular LeadingAge Ziegler 200 listing. The Obligated Group operates three distinguished continuing care retirement communities in Texas, demonstrating a commitment to delivering quality living options for seniors.
Featured Communities
Among the notable properties owned by BPH is Brazos Towers at Bayou Manor, a well-established community that opened its doors in 1963. Set on a seven-acre campus, it is ideally located between the Meyerland and West University neighborhoods in Houston.
Another significant community is The Hallmark, which was added to BPH's portfolio in 1972. This property is nestled within approximately 5 acres and is positioned in the vibrant Galleria neighborhood known for its high-end shopping, dining, and living options.
Opened in 2009 and acquired by BPH in 2018, Longhorn Village spans 55 acres within the picturesque Steiner Ranch development near Austin. This community enhances BPH's offerings with a backdrop of gently rolling hills found on the outskirts of the central Texas Hill Country.
Use of Bond Proceeds
The proceeds from the Series 2025 Bonds are earmarked for several vital initiatives, including financing various capital projects across BPH's retirement communities. Additionally, some proceeds will be allocated to refund portions of existing debt, thereby reducing interest expenses and alleviating renewal risks associated with bank loans. The funding will also establish a debt service reserve and cover the costs associated with issuing the bonds.
Leadership Comments
Deidre Kinsey, the Chief Executive Officer of BPH, expressed her enthusiasm regarding the financing, stating, "Brazos Presbyterian Homes is thrilled with the successful completion of another financing expertly led by Ziegler and Brandon Powell. Their strategic guidance, responsiveness, and deep sector expertise have positioned us for continued growth and long-term financial stability."
Brandon Powell, the Managing Director of Ziegler Senior Living Finance, shared insights on the significance of their partnership with BPH. He noted, "Our long-standing relationship with BPH reflects a true strategic partnership rather than a typical financing arrangement. The decision to upsize this bond issue from $55 million to $80 million after the POS was released underscores both BPH's strong financial position and our team's ability to deliver creative, competitive financing solutions."
Ziegler’s Expertise in Senior Living Financing
Ziegler maintains its position as a leading underwriter of financing solutions for nonprofit senior living providers, offering tailored strategies that meet the specific needs of its clients. The firm specializes not only in investment banking and financial risk management but also provides comprehensive merger and acquisition services, seed capital, and FHA/HUD services. Additionally, Ziegler engages in capital and strategic planning while producing valuable research and educational resources for the senior living industry.
About Ziegler
Ziegler operates as a privately held investment bank with a clear focus on healthcare, senior living, education, and structured finance. Based in Chicago, the firm supports its clients nationwide through various financial services including capital raising, strategic advisory, and fixed income solutions. Learn more about Ziegler and its services by visiting its website.
Frequently Asked Questions
What is the purpose of the $80 million financing?
The financing will fund capital projects at BPH's retirement communities, reduce existing debt, and create a debt service reserve.
How does this financing affect Brazos Presbyterian Homes?
This financing strengthens BPH's financial stability and positions it for continued growth in the senior living sector.
Where are the Brazos Presbyterian Homes located?
BPH operates three senior living communities in Texas, including properties in Houston and Austin.
What rating did the Series 2025 Bonds receive?
The bonds were rated 'BB+' (Stable) by Fitch, indicating a stable credit profile.
What services does Ziegler offer?
Ziegler provides a range of services including investment banking, financial risk management, and strategic advisory specifically for senior living providers.
