CHICAGO, May 24, 2024 /PRNewswire-PRWeb/ -- Ziegler, a specialty investment bank, is pleased to announce the successful closing of BHI Senior Living's Series 2024AB Bank Loans.

Ziegler, a specialty investment bank, is pleased to announce the successful closing of BHI Senior Living's Series 2024AB Bank Loans.

BHI Senior Living, Inc. (BHI) is a faith-based nonprofit organization established in 1904 that owns and operates 10 market rate CCRCs across the states of Indiana, Ohio, and Michigan and operates a total of 3,191 units. BHI was the 22nd largest provider in the 2023 LeadingAge Ziegler 200 (based on a previous unit count of 2,808). BHI's Obligated Group (subject of this financing) consists of 384 independent living units, 524 assisted living units, and 225 skilled nursing units for a total of 1,133 units/beds across three communities located in Indiana:

•     Hoosier Village – Zionsville, IN;
•     The Towne House – Fort Wayne, IN; and
•     Four Seasons – Columbus, IN.

BHI will finance two phases of new construction at its flagship Hoosier Village campus located in Zionsville, IN (the "Project"). The Project consists of a new type of independent living unit for BHI: 3-story, 3,200 square-foot townhomes with elevators and upscale finishes. BHI intends to construct 20 independent living townhomes in each of two phases, beginning in Spring 2024 and another in Spring 2025, for a total of 40 units. BHI currently has a significant waitlist with over 400 households seeking an independent living unit at Hoosier Village.

Ziegler conducted a full bank search process and received multiple attractive proposals for the Project and worked with BHI to develop an efficient plan of finance that was customized to leverage proceeds from the initial entrance fee pool. After extensive analysis, BHI elected to make use of the Phase I initial entrance fee pool to fund the majority of the Phase II project costs in 2025, rather than to utilize debt financing for the entire project amount.

The Series 2024A Bonds consist of a $19M direct placement which represents the "Permanent Debt" associated with the Project and it will have a 7-year commitment period. The Series 2024B Bonds will consist of a variable rate drawdown loan of up to $13M. This loan is considered to be "Temporary Debt" as it will be used to fund a portion of Phase 2's construction in 2025. Initial entrance fees received in Phase 2 will be used to pay down the Temporary Debt loan in full.

The Series 2024AB Bonds marks BHI Senior Living's 8th financing with Ziegler since 2000.

Roger Weideman, Chief Financial Officer of BHI stated, "We have a lot of demand for our independent living units, and we look forward to being able to make these new units available. The current level of interest rates and construction costs can make it more difficult to complete new projects that allow for pricing at market-competitive rates that cover our project and operating costs. We are extremely pleased that, with the help of Ziegler, we were able to develop a plan with a good interest rate that minimized additional long-term debt."

Tom Meyers, Senior Managing Director, Ziegler Senior Living Finance added, "Ziegler is pleased to have the opportunity to once again serve its long-term client BHI Senior Living. BHI was able to obtain multiple attractive bank proposals in a challenging credit market which speaks to the strength of this growing organization. We were also happy to work with BHI on the plan of finance to maximize the use of the entrance fee pool for this two phased project which materially lowered the amount of the financing's need. This independent living project at Hoosier Village will help to further bolster BHI's concentrated scale in its core Indianapolis market. Last, Ziegler continues to be impressed by BHI's strategic growth and operational expertise as a leader in the Midwest."

Ziegler is the nation's leading underwriter of financings for not-for-profit senior living providers. Ziegler offers creative, tailored solutions to its senior living clientele, including investment banking, financial risk management, merger and acquisition services, seed capital, FHA/HUD, capital and strategic planning as well as senior living research, education, and communication.
For more information about Ziegler, please visit us at http://www.ziegler.com.

About Ziegler:
Ziegler is a privately held, national boutique investment bank, capital markets and proprietary investments firm. It has a unique focus on healthcare, senior living and education sectors, as well as general municipal and structured finance. Headquartered in Chicago with regional and branch offices throughout the U.S., Ziegler provides its clients with capital raising, strategic advisory services, fixed income sales, underwriting and trading as well as Ziegler Credit, Surveillance and Analytics. To learn more, visit http://www.ziegler.com.

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.

Media Contact

Christine McCarty, Ziegler, 3125961617, cmccarty@ziegler.com, www.ziegler.com

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SOURCE Ziegler