Ziegler Secures $45 Million Financing for Expansion of Larksfield Place
In a significant financial move, Ziegler recently announced the successful closing of a $45,205,000 financing for Larksfield Place, a prominent life plan community dedicated to providing exceptional senior living experiences. This financing was made possible through a partnership with the City of Wichita in Kansas.
About Larksfield Place and Its Services
Larksfield Place, established in 1988, is known for its commitment to fostering a vibrant and engaging environment for seniors. The expansive 67-acre campus, situated in the northeast district of Wichita, features a mix of accommodations including independent living villas, various types of apartments, and skilled nursing suites. Larksfield emphasizes its 80% refundable Type C entrance fee contract, ensuring a significant financial benefit for its residents.
Expanding Facilities
The community is set to undergo a major expansion with the introduction of Larksfield Landing, a new four-story building comprising 48 independent living apartments. This ambitious project is already gaining traction, with 37 of the 48 apartments presold, illustrating strong market demand and confidence in Larksfield's offerings.
Financial Structure of the Bonds
The financing deal involves a mix of long-term fixed-rate bonds and short-term variable-rate bonds, marking Larksfield's ongoing collaboration with Ziegler since 1994. The structure includes $32,455,000 in tax-exempt fixed-rate bonds maturing in 2060 and designed to amortize alongside existing debts. This will help maintain an even annual debt service throughout the loan's life. Notably, the short-term $12,750,000 Series 2025B bonds will be repaid from entrance fees generated by new residents.
Uses of the Bond Proceeds
The funds secured through the Series 2025 Bonds are earmarked for several essential purposes: construction costs associated with Larksfield Landing, payment of interest on the bonds for 27 months, funding of a deposit for the Master Reserve Fund, and covering costs related to the bond issuance. These funds are crucial for ensuring the successful maturation of the project while managing operational costs effectively.
Market Reception and Institutional Involvement
The Series 2025A Bonds received a warm welcome from institutional and local investors, reflecting strong confidence in the project's viability and financial stability. The successful sale was complemented by Old National Bank's direct purchase of the Series 2025B bonds, demonstrating robust institutional trust in Larksfield's fiscal health and future potential.
Leadership Insights
Mike Hambley, President and CEO of Ziegler, expressed gratitude for the enduring partnership with Larksfield Place, emphasizing the alignment of vision over several decades. He highlighted the significance of tailored financing solutions that support Larksfield's mission and goals.
Matt Mulé, Senior Vice President at Ziegler, also emphasized the importance of this project, noting that the community's expansion aligns with its commitment to providing quality living conditions for seniors. The overwhelming response to the Series 2025A Bonds underscores the faith investors have in Larksfield’s management and strategic direction.
Ziegler's Role in Senior Living Finance
As a leading entity in financing not-for-profit senior living providers, Ziegler continues to offer personalized financial solutions tailored to the unique needs of clients in the senior living sector. Their services encompass a variety of offerings from investment banking to strategic advisory, spotlighting their significant role in supporting communities like Larksfield Place.
Frequently Asked Questions
1. What is the purpose of the financing for Larksfield Place?
The financing will support the construction of new independent living facilities and fund operational costs related to the bonds.
2. How many apartments are being developed in Larksfield Landing?
Larksfield Landing will feature 48 new independent living apartments to enhance the community's offerings.
3. Who were the investors involved in this financing?
The financing saw participation from 13 institutional and local Kansas retail investor accounts, showcasing strong market confidence.
4. What was the financial structure of the bonds?
The financing includes both long-term fixed-rate bonds and short-term variable-rate bonds, designed to ensure level debt service.
5. What distinguishes Ziegler in the financing of senior living?
Ziegler's dedication to custom financial solutions and their extensive experience in the sector positions them as a leading underwriter for not-for-profit senior living.
