Ziegler Arranges $125M in Financing for HumanGood

PLEASANTON, Calif. — Ziegler has arranged a total of $125 million in financing for HumanGood, a nonprofit owner-operator based in the Bay Area city of Pleasanton.

Washington Federal Bank is providing the funds, which include:

  • $15.5 million in bonds, which refinance an existing tax-exempt bank placement
  • $64.8 million in bonds that are a Cinderalla refinancing of two fixed-rate, tax-exempt bond issues.
  • a $33.8 million taxable term loan.
  • an $11 million taxable revolving line of credit.

HumanGood owns and/or operates 21 continuing care retirement communities (CCRCs) and 95 affordable housing communities in California, Washington, Arizona, Nevada, Idaho, Pennsylvania and Delaware.

In 2019, HumanGood brought together its Northern California branch (formerly ABHOW), Southern California branch (formerly be.group) and Fresno branch into a single borrowing entity. The borrowing group consists of 14 CCRCs totaling 2,185 independent living units, 474 assisted living units, 160 memory care units and 659 skilled nursing beds.

The taxable term loan will fund various campus improvements across the communities and refinance a portion of bonds issued in 2013. The loan has a commitment period of 15 years and is structured as a draw-down loan for the first 24 months. It features a LIBOR-based variable rate.

Proceeds of the revolving line of credit will be used to fund future capital projects as needed, and it also features a LIBOR-based variable rate.

“This financing has been a home run for HumanGood in terms of gaining flexible access to additional capital at historically low interest rates, refinancing existing debt to realize substantial savings, and strengthening and expanding our partnership with Washington Federal Bank,” says Andy McDonald, HumanGood’s CFO.