HJ Sims Successfully Facilitates Closing of $15,000,000 Pre-Development Financing for Campus Expansion Project
FAIRFIELD, Conn., Aug. 14, 2018 /PRNewswire/ -- HJ Sims (Sims), a privately held investment bank and wealth management firm founded in 1935, is pleased to announce the successful July 2018 closing of a $15,000,000 revolving pre-development financing for Lenbrook, a Life Plan Community, located in Atlanta, GA.
Lenbrook opened its doors in the 1980s, conducting its initial campus expansion in 2006. Given the demand for independent living units and the need to expand options for residents, Lenbrook embarked on a 53-unit independent living expansion including 14 villa-style apartments and 39 apartments, a parking garage, community space, and a traffic light to facilitate resident egress. The restructuring of Lenbrook's existing indebtedness in 2016 through the use of tax-exempt fixed rate bonds generated cash-flow savings to facilitate the purchase of land adjacent to Lenbrook's existing community.
Lenbrook expects to incur pre-development costs up to approximately $15,000,000, which it anticipates to fund through a revolving construction loan. These pre-development costs will primarily fund land acquisition, marketing related to pre-selling the new independent living apartments, and design/development related activities. Since the pre-development loan was to be secured on a parity basis with the Series 2016 Bonds, Lenbrook was required to meet the additional indebtedness incurrence provisions under its existing Master Trust Indenture prior to closing on the pre-development loan.
On July 19, 2018, Sims successfully facilitated the closing of the $15,000,000 pre-development loan, which was structured as a taxable revolving commercial loan, provided by SunTrust Bank and its Aging Services/Senior Living Industry Practice Group. While it is expected that the loan will be repaid from initial entrance fees, it was structured with a three-year revolving line of credit that will then amortize over a seven-year period following the initial draw period, providing additional flexibility for Lenbrook to amortize its outstanding principal balance, and enabling Lenbrook to repay the pre-development loan from existing operations without compromising its ability to service its debt service on the Series 2016 Bonds and otherwise meet its financial covenants.
"Following a very successful bond refinancing during 2016, we turned to our investment banking partners again to assist us in arranging an interim bank financing for a potential future expansion project. Aaron Rulnick and Melissa Messina crafted an RFP followed by a bank meeting leading to several strong banking proposals. The transaction was well-structured providing financial flexibility, alignment with our existing covenants and closing on schedule. Aaron and Melissa are true partners who take the time to understand our financial needs and recommend the best solution for our organization," said Dan Dornblaser, CFO, Lenbrook.
For Financed Right® solutions, contact Aaron Rulnick: [email protected] | 301.424.9135 or Melissa Messina at 203.418.9015 or [email protected].
ABOUT HJ SIMS: Founded in 1935 on Wall Street, HJ Sims is a privately held investment bank and wealth management firm with $2.2 billion of assets under management. HJ Sims is known as one of the country's oldest underwriters of tax-exempt and taxable bonds, having raised $22 billion for projects throughout the US. The firm is headquartered in Fairfield, Connecticut, with nationwide investment banking, private client wealth management and trading locations. HJ Sims is not affiliated with Lenbrook Bridge. Visit www.hjsims.com/ourstory. Investments involve risk, including the possible fluctuation of principal. Member FINRA, SIPC. Follow HJ Sims on Facebook and LinkedIn.
SOURCE HJ Sims
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