GERMANTOWN, Tenn. — Ziegler has arranged $45.2 million in financing for The Village at Germantown, a continuing care retirement community in the Memphis suburb of Germantown.
The community is located on a 27.5-acre site and features 230 independent living units, 32 assisted living units, 16 memory care units and 50 skilled nursing beds.
The financing is a “Cinderella refunding,” meaning that taxable bank debt will convert to non-bank-qualified, tax-exempt debt in September 2022. The transaction refinances a previous bond issue from 2012.
First Horizon provided the taxable loan with a 12-year term, 27-year amortization and a LIBOR-based interest rate.
The Village will realize annual cash flow savings of $443,000 as a result of the transaction, according to Ziegler.
The Ziegler Investment Banking team members involved in the transaction were Brandon Powell, Genia Weeks and Caroline Robertson.
“We wanted to take advantage of the historically low interest rates, but were a couple of years away from being able to call our bonds,” says Mike Craft, CEO of The Village at Germantown. “Ziegler helped us with a creative strategy to restructure our debt, saving us a significant amount of money on interest.”