A $240 million financing on which HJ Sims is the lead underwriter is the largest fixed-rate public bond issue for a single-site continuing care retirement community, according to the privately held investment bank and wealth management firm.
Bank of America Merrill Lynch also is an underwriter on the upcoming issue of $239,965,000 in refunding bonds for the Massachusetts Development Finance Agency, Sims said.
The issue is for NewBridge on the Charles, a Dedham, MA, CCRC, also known as a life plan community. NewBridge, managed by the not-for-profit Hebrew SeniorLife, opened in 2009 and has 256 independent living apartments, villas and cottages; 91 assisted living suites offering traditional care and memory care; and a healthcare center with 268 skilled and chronic care beds, according to Sims.
NewBridge expects to use proceeds from the bonds to refund outstanding debt and pay issuance costs. The bonds are secured by a mortgage on the retirement community, a pledge of gross revenues and a debt service reserve fund that is partially funded by an equity contribution from Hebrew SeniorLife.
The Series 2017 bonds, rated BB+, outlook stable, by Fitch Ratings, are scheduled to sell via negotiated sale next week, and the financing is expected to close by the end of the year.
Sims said it has worked with the community since its initial financing in 2007 and that its relationship with Hebrew SeniorLife dates back to 1992.