Ziegler Closes Financing for The United Methodist Retirement Homes
Chicago welcomed significant news as Ziegler announced the successful closure of its $92,125,000 Series 2025A, 2025B, and 2025C bonds for The United Methodist Retirement Homes (UMRH). This financing not only marks a crucial step for UMRH but also reflects the growth and vibrancy of senior living options available.
Background of The United Methodist Retirement Homes
The United Methodist Retirement Homes, a nonprofit based initially in North Carolina, has roots tracing back to 1945. Currently, it manages three Life Plan Communities, which include notable locations: Croasdaile Village in Durham, Wesley Pines in Lumberton, and Cypress Glen in Greenville. Collectively, these communities provide a comprehensive suite of services, featuring 688 independent living units, alongside memory care, assisted living, and skilled nursing options.
Ranking as a Senior Living Provider
According to recent evaluations, UMRH stands as the 3rd largest nonprofit senior living operator in North Carolina and holds the position of the 88th largest across the United States, as per the latest LeadingAgeZiegler 200 report. This recognition is a testament to UMRH’s commitment to quality care and service, further enhanced by its partnership with LCS, the 4th largest operator of senior living facilities nationwide.
Exciting Expansion Plans
With the newly acquired financing, UMRH, assisted by LCS Development, is embarking on ambitious expansion projects at both Croasdaile Village and Wesley Pines communities. The Croasdaile Village Project features the addition of 58 new independent living units, all of which are pre-sold and will enhance the community's offerings. Moreover, renovations to common areas, including a new fitness room and expanded dining facilities, promise to elevate the quality of life for residents.
Innovations at Wesley Pines Community
At Wesley Pines, the expansion will include four new private skilled nursing rooms and an upgrade of existing facilities. This will change four semi-private nursing rooms into private ones while maintaining the total number of nursing beds. Additionally, a new therapy suite will be constructed, transforming the former space into an active zone for skilled nursing activities, alongside improvements to dining and activities for both independent and assisted living residents.
Structure and Purpose of the Series 2025 Bonds
The funds from the Series 2025 Bonds will play several crucial roles: financing the aforementioned projects, covering interest during the construction phase, and addressing costs related to the bond issuance process. This issuance includes three components:
- Series 2025A Long-Term Bonds ($52,825,000): These long-term fixed-rate bonds, rated BBB by Fitch Ratings, come with a final maturity in 2056, ensuring a stable financing structure for the long haul.
- Series 2025B Tax Exempt Mandatory Paydown Securities ($26,300,000): This short-term financing will be funded through initial entrance fees from new residents at Croasdaile Village. With a blended average yield of 3.53%, it demonstrates a thoughtful approach to managing debt.
- Series 2025C Long-Term Bank Bonds ($15,000,000): This portion representsVariable rate bonds purchased by Truist Commercial Equity, Inc., showcasing UMRH's ongoing partnership to ensure financial diversification.
Tommy Brewer, Managing Director in Ziegler's Senior Living Finance Practice, remarked on the long-standing relationship with UMRH, expressing pride in supporting a premier organization dedicated to enhancing senior living. The Series 2025 Bonds will expand the capacity and quality of care offered at Croasdaile and Wesley Pines, positively impacting many lives.
About Ziegler
Ziegler is a distinguished investment bank known for its innovative financing solutions tailored to nonprofit senior living providers. They offer an array of services, from investment banking to strategic advisory, supporting clients across healthcare and senior living sectors. With a strong focus on developing infrastructure for senior living, Ziegler stands as a vital contributor to reshaping how communities care for their aging populations.
Frequently Asked Questions
What are the main purposes of the Series 2025 Bonds?
The Series 2025 Bonds are intended to finance expansion projects, cover construction-period interest, and address bond issuance costs.
How many independent living units does UMRH operate?
UMRH operates 688 independent living units across its three Life Plan Communities in North Carolina.
Who manages The United Methodist Retirement Homes?
UMRH has been managed since 2000 by LCS, a major operator in the senior living sector.
What improvements are being made at Croasdaile Village?
Improvements include new independent living units and renovations to common areas, enhancing amenities for residents.
What is Ziegler's role in the bond issuance?
Ziegler acts as the lead underwriter for the bonds, providing essential financial services to support the growth of UMRH.
