Ziegler Announces Successful Financing for Pennybyrn
In a significant financial accomplishment, Ziegler has successfully priced $41,710,000 in Series 2025A Bonds for Maryfield, Inc., known as Pennybyrn. This financing marks a pivotal step towards enhancing the capital structure of the nonprofit organization, aimed at improving the quality of life for seniors within the community.
Understanding Pennybyrn's Mission
Pennybyrn, founded in 1947 by the Congregation of the Poor Servants of the Mother of God, operates as a nonprofit corporation. Being sponsored by the Roman Catholic Diocese of Charlotte, Pennybyrn runs a life care community that spans over 72 acres in High Point. Currently, this community includes 222 independent living units—comprised of 173 apartments and 49 cottages—and also provides 48 assisted living units alongside 125 skilled nursing beds, facilitating both rehabilitation and long-term care.
Impact of the Series 2025 Bonds
The proceeds from the Series 2025 Bonds will serve multiple essential purposes: firstly, they will allow for the current refunding of Pennybyrn's Series 2015 Bonds; secondly, they will fund $3 million in new capital for various enhancements across the campus; thirdly, a portion will be allocated to establish a debt service reserve fund, ensuring financial stability; and lastly, they will cover costs associated with the bond issuance. Notably, these bonds are non-rated and have been issued under the authority of the North Carolina Medical Care Commission.
Strategic Financing Moves
Part of Pennybyrn's financing strategy involves extending the maturity on the refunding component, which, in turn, results in a decrease of $1.1 million in their maximum annual debt service burden, even after incorporating the debt service of the new capital. The Series 2025 Bonds offer a 30-year final maturity, with an amortization that yields a weighted average maturity of 11.4 years and a blended yield to maturity of 4.775%.
Expert Insights from Ziegler
Tad Melton, Managing Director in Ziegler's Senior Living Finance Practice, expressed enthusiasm regarding the bond pricing success: "We are extremely pleased with the successful pricing of the Series 2025 Bonds and honored to continue our longstanding relationship with Pennybyrn. This financing not only enhances Pennybyrn's capital structure but also supports meaningful reinvestment into their campus. Pennybyrn's leadership team was thoughtful and strategic throughout the process, and we are proud to support their continued mission of serving seniors with compassion and excellence."
About Ziegler's Services
Ziegler stands as the nation’s leading underwriter for financing within the not-for-profit senior living sector. The firm is committed to offering creative and tailored solutions, including investment banking services, financial risk management, and strategic planning. Their extensive portfolio also encompasses merger and acquisition services, seed capital, as well as research and education tailored for senior living providers.
The Importance of Community Support
As we see more organizations like Pennybyrn thrive through strategic financial initiatives, it becomes increasingly clear how essential community support is for enhancing the lives of seniors. The collaborative efforts between Ziegler and Pennybyrn stand as a testament to what can be achieved through purposeful investment in community services.
Frequently Asked Questions
What is Pennybyrn?
Pennybyrn is a nonprofit organization providing various living options for seniors, including independent and assisted living facilities.
How much financing did Ziegler secure for Pennybyrn?
Ziegler successfully priced $41,710,000 in Series 2025A Bonds for Pennybyrn.
What will the funding be used for?
The funds will refund previous bonds, support campus improvements, establish a debt service reserve, and cover issuance costs.
What is the maturity period for the bonds?
The Series 2025 Bonds have a final maturity of 30 years, with a weighted average maturity of 11.4 years.
What role does Ziegler play in the financing sector?
Ziegler is a leading underwriter specifically for not-for-profit senior living financing, providing tailored financial services to its clients.
