Ziegler Closes $72.6M Bond Refinancing for Two-Property HumanGood Portfolio

by Jeff Shaw

DES MOINES, Wash. and PHOENIX — Ziegler, a specialty investment bank, has closed $72.6 million in bond financing for nonprofit owner-operator HumanGood.

The bonds will combine two HumanGood communities — The Terraces of Phoenix in Phoenix and Judson Park in Des Moines — into one financing package. The new entity is known as the HumanGood National Obligated Group, and will represent all the company’s properties not located in California.

In connection with forming the National Obligated Group, the borrower will refinance two outstanding tax-exempt bank placements, one at each community, and will refinance a portion of subordinate debt owed to HumanGood NorCal. The financing consists of two tax-exempt, fixed-rate bond issues, a tax-exempt variable rate bank placement, and a taxable variable rate bank placement.

The two fixed-rate bonds will be issued through the Washington State Housing Finance Commission and The Industrial Development Authority of the City of Glendale, Arizona. The two variable-rate bank placements will be purchased by one lending institution, Washington Federal Bank, with a tax-exempt series being issued through the Industrial Development Authority of the City of Glendale. The new capital structure will be comprised of roughly 50 percent variable-rate and 50 percent fixed-rate debt, partially hedged by an interest rate cap purchased in 2015.

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