Ziegler Closes $58.6M Financing for Community Foundation of Northwest Indiana

by Jeff Shaw

MUNSTER, Ind. — Ziegler, a specialty investment bank, has closed a $58.6 million tax-exempt, fixed-rate Series 2015 Bond issue through the Indiana Finance Authority for Community Foundation of Northwest Indiana (CNFI), which operates three not-for-profit hospitals and a continuing care retirement community (CCRC).

CFNI is rated “A” by Fitch and “A” by Standard & Poor’s after an upgrade last December. Ziegler served as the sole manager of the Series 2015 Bond issue that advance refunds a portion of CFNI’s Series 2007 bonds.

The final term bond maturing in 2036 carried a coupon of 5 percent and was initially priced to yield 3.6 percent for a spread to MMD of 95 basis points. The advance refunding transaction, which provides an all-in financing cost of 4.02 percent, creates over $5.4 million in net present value savings and over $700,000 in annual cash flow savings. Unlike the refunded bonds, the Series 2015 bonds were issued without a reserve fund facilitating leverage reduction.

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