NEWTON, N.C. — Ziegler has arranged $76.1 million in bond financing for EveryAge, a Newton-based nonprofit owner-operator formerly known as United Church Homes and Services.
The company was founded in 1961 to develop and manage seniors housing properties in the Southeast. The bonds affect the borrower’s three continuing care retirement communities: Abernethy Laurels in Newton; Piedmont Crossing in Thomasville, North Carolina; and Lake Prince Woods in Suffolk, Virginia.
The financing was achieved through four separate bond issues:
- $22.2 million in fixed-rate bonds to refund a series of 2017 bonds and fund $4.1 million in capital projects. The bonds have a 30-year maturity.
- $4.2 million in direct bank bonds through Truist to refund a portion of a bond financing from 2015. The “Cinderella loan” will be taxable until June 2022, at which point it will convert to a tax-exempt financing via an interest rate swap. It results in annual savings of $54,316.
- $31.3 million in direct bank bonds through Truist to refund fixed-rate bonds from 2017. These are also structured as a “Cinderella loan” that will convert to tax-exempt financing in 2022, for an annual savings of $490,846.
- $18.8 million in direct bank bonds through Truist to refinance fixed-rate bonds from 2015. While also a “Cinderella loan,” these will convert in June 2024 for an annual savings of $267,748.
“EveryAge is diligent in pursuing capital structure strategies that enhance the organizations ability to fulfill its mission,” says Tommy Brewer, managing director for Ziegler Senior Living Finance. “The Series 2021 financings not only lowered annual debt service significantly, but also created covenant flexibility.”