Bond financing for senior living organizations spiked in volume in the first half of 2021, according to specialty investment bank Ziegler.
Senior living tax-exempt debt issuance for the first half of 2021 is up by 41% compared with the same period last year. Total par volume was almost $1.8 billion through June 30 compared with about $726 million for the same period in 2020 and roughly $1.4 billion in 2019, Ziegler said.
Senior living providers are heavily accessing the public debt markets to finance projects. New money issuance in the first half of 2021 was more than $1.1 billion, compared with the slightly more than $420 million issued for project financings during the same period last year, the bank said. Providers reportedly are looking at campus expansion projects, acquisitions, renovations and capital improvements.
The first half of the year has seen an uptick in refinancings, following decreases in 2019 and 2020. Refinancings are up more than $600 million compared with the first half of 2020, according to Ziegler.“
The Federal Reserve’s rate continues to be at all-time lows, and providers still have the opportunity to take advantage of that,” the bank reported.
