Ziegler Arranges $99.3M Bond Financing for CCRC Group in Maryland

MARYLAND — Ziegler has closed $99.3 million in bond financing for Integrace Inc., a group of four continuing care retirement communities (CCRCs) in Maryland. The company officially affiliated with Acts Retirement-Life Communities in April 2019.

Founded in 1974, Integrace is a nonprofit system of retirement communities consisting of Bayleigh Chase in Easton; Buckingham’s Choice in Adamstown; Fairhaven in Sykesville; and Copper Ridge in Sykesville. Integrace also operates a research institute, The Integrace Institute.

The financing consists of $87.1 million in tax-exempt bonds and $12.2 million in taxable bonds. The tax-exempt bonds are priced to yield 2.84 percent with a 15-year term and 30-year amortization. The taxable bonds are priced to yield 3.3 percent over a seven-year term and amortization.

The bonds were issued through the Maryland Health and Higher Educational Facilities Authority and placed with a large institutional investor.

The use of the financing is to refinance a variety of existing debt, fund capital improvements to the four communities and pay costs of issuance for the bonds.

“One of our critical objectives post-affiliation was to restructure [Integrace] and refinance the debt to both lower our borrowing costs and generate a significant project fund to reinvigorate the communities,” says Richard Winter, senior vice president and chief financial officer of Acts Retirement-Life Communities.