Ziegler closes on $56.3 million bond issue for Plymouth Place
Ziegler recently closed a $56.3 million fixed-rate, Fitch “BB+” (stable) Series 2015 Bond issue for Plymouth Place Senior Living, known as Plymouth Place, La Grange Park, IL.
Plymouth Place has 182 independent living apartments, 52 assisted living apartments, 26 memory support assisted living apartments and 86 skilled nursing beds. It also has several freestanding independent living cottages.
The community is located on 18.6 acres about 15 miles southwest of downtown Chicago. Providence Management and Development Co. provides day-to-day management of the skilled nursing unit of the community, Internet technology and related services, and financial reporting, financial planning and financial management services.
Proceeds from the sale of the bonds, together with certain other funds, will be used to pay for $2.3 million in capital improvements, advance refund the Series 2005A Bonds in the current outstanding amount of $52.8 million, establish a debt service reserve fund and pay certain expenses incurred in connection with the issuance of the Series 2015 Bonds and refunding the Series 2005A Bonds. Proceeds of the Series 2005A Bonds were used to redevelop the main building on the Plymouth Place campus and to demolish the former main building.
The Series 2015 Bonds extended the maturity of the refunded Series 2005A Bonds by 13 years, from 2037 to 2050, and were amortized to “wrap” around Plymouth Place's existing 2013 Bonds to create an overall aggregate level net debt service structure. As a result of the lower interest rates and a later final maturity, Plymouth Place will realize annual cash flow savings of approximately $750,000 through 2037.
Maximizing the annual cash flow savings was the primary goal of Plymouth Place's management in connection with the financing. In addition, several covenants and legal provisions were modified through an amended and restated master indenture, in recognition of the fact that Plymouth Place is now a stable rated continuing care retirement community with relatively strong financial ratios. The occupancy levels and financial performance of Plymouth Place have improved considerably from the time of Plymouth Place's Series 2013 financing, which was needed to refinance a non-renewing LOC Bank position that dated back to 2005 when the campus was being redeveloped.