Ziegler Closes $59 Million Covenant Retirement Communities Financing
December 29 2011 - 1:47PM
Marketwired
Ziegler, a specialty investment bank, is pleased to announce the
successful closing of a tax-exempt bank direct purchase for
Covenant Retirement Communities (CRC). The direct purchase was
completed by JP Morgan Chase and was structured as two series of
bonds, $15,830,000 of Series A Bonds and $43,335,000 Series B
Bonds, for a total aggregate par amount of $59,165,000 (Series 2011
Bonds).
The Series 2011 Bonds were the first multi-state issuance for
the Illinois Finance Authority. The Illinois Finance Authority
passed legislation allowing it to serve as a multi-state conduit
issuer in July, 2010. The CRC financing is the first financing that
has been approved and closed under the multi-state legislation.
Ziegler, the IFA, and CRC are very excited to be the first
transaction of what hopes to become a great resource to other
multi-state providers. "The Illinois Finance Authority is proud to
play a role in our State's first multi-state conduit transaction.
Governor Pat Quinn and the Illinois General Assembly recognized
that multi-state conduit issuance authority is an important tool to
both retain and create jobs in Illinois. The IFA is pleased to work
with Ziegler's professional team and, importantly, Covenant
Retirement Communities, on this groundbreaking project," said Chris
Meister, IFA Executive Director.
Proceeds from the Series 2011 Bonds were used to refund the
outstanding Series 1999 (MI) Bonds, Series 1999 (CO) Bonds, Series
2004 Bonds, and Series 2006 Bonds, as well as provide CRC with more
than $6 million of new money to pay for capital improvements for
several CRC campuses in Colorado, Illinois, and Michigan. In
addition to the issuance of the Series 2011 Bonds, Ziegler also
worked closely with Covenant Retirement Communities on the
replacement of two letters of credit for the Series 1992 and 1995
Bonds. Both the Series 1992 and 1995 Bonds will be secured by
letters of credit from JP Morgan Chase.
Covenant Retirement Communities, Inc. (CRC) is an Illinois
501(c)(3) eligible corporation that owns and operates a system of
continuing care communities offering the full continuum of care, in
association with the Evangelical Covenant Church. The corporate
office of CRC is located in Skokie, IL with facilities located in
California, Washington, Connecticut, Florida, Illinois, Minnesota,
Colorado, and Michigan. CRC currently has 14 communities with more
than 4700 independent living, assisted living, and skilled nursing
units and is #5 on the LeadingAge Ziegler 100, a list of the
largest not-for-profit senior living providers in the nation.
As one of the nation's leading underwriters of financing for
non-profit senior living providers Ziegler offers investment
banking, financial risk management, merger and acquisition
services, investment management, seed capital, FHA/HUD, capital and
strategic planning as well as senior living research, education,
and communication. Don Carlson, Managing Director and Vice Chairman
at Ziegler, commented, "The IFA multistate legislation provided a
very cost effective and efficient process which allowed CRC to
issue bonds to refund prior issues in Colorado, Michigan and
Illinois and to fund new projects in each of these states as well.
This transaction will further strengthen CRC's conservative capital
structure, which will allow them to continue to provide the highest
level of service to their residents. This transaction was truly a
success on many fronts."
For further information on the structure and use of these
issues, please see the Official Statements for the Series 1992 and
Series 1995 Bonds located on the Electronic Municipal Market Access
system's Document Archive.
For more information about Ziegler, please visit us at
www.Ziegler.com.
About Ziegler:
The Ziegler Companies, Inc. (PINKSHEETS: ZGCO) together with its
affiliates (Ziegler) is a specialty investment bank with unique
expertise in complex credit structures and advisory services.
Nationally, Ziegler is ranked as one of the leading investment
banking firms in its specialty sectors of healthcare, senior
living, religion and education finance, as well as corporate
finance and FHA/HUD. Headquartered in Chicago, IL with regional and
branch offices throughout the U.S., Ziegler creates tailored
financial solutions including bond financing, advisory, private
placement, seed capital, M&A, risk and asset management.
Ziegler serves institutional and individual investors through its
wealth management and capital markets distribution channels.
Certain comments in this news release represent forward-looking
statements made pursuant to the provisions of the Private
Securities Litigation Reform Act of 1995. This client's experience
may not be representative of the experience of other clients, nor
is it indicative of future performance or success. The
forward-looking statements are subject to a number of risks and
uncertainties, in particular, the overall financial health of the
securities industry, the strength of the healthcare sector of the
U.S. economy and the municipal securities marketplace, the ability
of the Company to underwrite and distribute securities, the market
value of mutual fund portfolios and separate account portfolios
advised by the Company, the volume of sales by its retail brokers,
the outcome of pending litigation, and the ability to attract and
retain qualified employees.
This communication does not constitute an offer to buy these
securities. The offering is made only by the Official Statement and
through an appropriately registered representative. The Series 2011
Bonds may not be appropriate for all investors. Market value and/or
accrued interest will fluctuate during the period held, and, if
sold prior to maturity, the yield received may be more or less than
the yield calculated at the time of purchase. Discounted yields
herein are gross yields to maturity. Discounted bonds may be
subject to capital gains tax, rates of which will vary, so
investors should consult their own tax advisor with regard to their
personal tax situation. Interest on municipal bonds may be exempt
from federal income tax but may be subject to tax for residents of
certain states. For bonds designated AMT, taxes may exist for
certain investors. Ziegler will sell these bonds on a principal
basis.
The corporation or its officers, directors, stockholders, or
members of their families may at times have a position in the
securities mentioned herein and may make purchases or sales of
these securities. Not all call or put information is identified in
the description above. Please be sure to discuss any special
features with your Financial Advisor before deciding whether to
invest in these securities.
Christine McCarty 312 596 1617 Email Contact
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