HJ Sims Issues Forward Delivery Bonds to Lock in Debt Service Savings One Year Ahead of Call Date
FAIRFIELD, Conn., Jan. 13, 2020 /PRNewswire/ -- HJ Sims (Sims), a privately held investment bank and wealth management firm founded in 1935, is pleased to announce the closing of a $24.290 million financing on December 19, 2019, for Peconic Landing at Southold (Peconic), a life plan community (LPC) located in Greenport, NY. Sims is privileged to be a financial partner with Peconic, having financed initial construction of the community in 2000, and an expansion in 2015.
Residents in Peconic's 296 independent living apartments and cottages, 42 assisted living units and 60 skilled nursing beds enjoy a 145 acre campus with 2,700 feet of private beach on Long Island Sound. Opened in 2002, it is the only LPC in New York State organized under the equity model with residents belonging to a cooperative, providing for the opportunity to share in the appreciated value of their independent living unit. Peconic's skilled nursing facility is recognized among U.S. News & World Report's Best Nursing Homes in America, and is the only Long Island community accredited by the Continuing Care Accreditation Commission.
While current interest rates offered debt service savings to Peconic, the outstanding 2010 bonds could not be refinanced until late 2020. Sims proposed issuance of Forward Delivery Bonds, wherein new bonds would be sold currently with a set interest rate, but delivery/settlement not occurring until the call date in 2020. Proceeds of the new bond issue would then be used to redeem the outstanding 2010 bonds. Peconic benefited by eliminating the risk of rising interest rates before the call date. An additional $1.97 million in new bond proceeds will be used for capital improvements to enhance resident experience, including additional auditorium seating and a dining venue.
The new bonds were assigned a BBB- rating from Fitch Ratings. Strong financial performance and lower debt service enabled Fitch to upgrade the outlook from Stable to Positive.
Sims closed the Series 2019A for $1.965 million (current bonds) and Series 2019B for $22.325 million (forward delivery bonds). The forward delivery bonds will settle in November 2020 and carry an interest rate of 3.45% for the bonds maturing in 2040.
"Peconic offers our sincere appreciation and gratitude to Sims for again providing us with an opportunity to strengthen the fiscal stability of our community. For 20+ years, Sims has been an outstanding partner by providing multiple opportunities that have significantly contributed to our overall financial success. Our most recent collaboration, a 2019 debt refinancing, will save our community $300,000+ annually. This savings will assist us in moving forward with our long-term strategic plans while further securing our financial stature. Sims provides a perfect combination of financial expertise and innovation. We look forward to seeing what we accomplish together in the future," Lisa Quinn, Director of Finance, Peconic Landing at Southold, Inc.
Please contact Andrew Nesi: 203-418-9057 | [email protected].
ABOUT HJ SIMS: Founded in 1935 on Wall Street, HJ Sims is a privately held investment bank and wealth management firm. HJ Sims is known as one of the country's oldest underwriters of tax-exempt and taxable bonds, having raised $28+ billion for projects throughout the US. The firm is headquartered in Fairfield, CT, with nationwide investment banking, private client and trading locations. Visit www.hjsims.com/ourstory. Investments involve risk, including the possible fluctuation of principal. Past performance is no guarantee of future results. HJ Sims is not affiliated with Peconic Landing. Member FINRA, SIPC. Facebook, LinkedIn, Instagram and Twitter.
CONTACT: Tara Perkins, AVP Marketing Communications | 203-418-9049 | [email protected]
SOURCE HJ Sims
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