The Ziegler team’s approach to paving Beacon Hill’s path toward long-term, financial stability has been indispensable. Their tireless effort, creativity and unwavering advocacy allows us to contemplate a healthy financial future.
January 11, 2018
Ziegler, a specialty investment bank, is pleased to announce the successful closing of the Michigan Christian Home d/b/a Beacon Hill at Eastgate (“Beacon Hill”) $42,540,000 Series 2017 Bonds.
Beacon Hill, a Michigan non-profit corporation was founded in 1951 by area Baptist churches to provide senior living and healthcare services in a Christian environment to Grand Rapids seniors. Beacon Hill is a Type B CCRC that is situated on a 20-acre campus located in the Eastgate neighborhood of Grand Rapids that consists of (i) 170 entrance fee independent living apartments, (ii) 20 rental independent living apartments, (iii) 48 assisted living suites, (iv) 35 memory support assisted living suites, (v) 29 skilled nursing beds, and (vi) related common areas, amenities and recreational areas including the new auditorium and garden café referred to as the Community House.
Beacon Hill initially contemplated a bifurcated structure with approximately $20 million of bank debt and $23 million of public fixed rate debt. However, as the pricing date approached and MMD and interest rate spreads grew more favorable, Beacon Hill opted for a fully public fixed rate offering. The non-rated Series 2017A Bonds is the sole debt outstanding and the first public fixed rate issuance for Beacon Hill.
The proceeds of the Series 2017A Bonds, together with certain other monies held by the Borrower, will be used to (a) refund the outstanding tax-exempt Series 2015A, 2015B, 2015C and 2015D Bonds held by First Midwest Bank and The Huntington Bank, (b) fund the termination payment of two hedge agreements entered into in connection with the Series 2015 Bonds, (c) fund certain capital expenditures, (d) fund a debt service reserve fund, and (e) pay the costs of issuance of the Series 2017A Bonds.
“Brandon Powell, Reanae Seth, and the Ziegler team’s approach to paving Beacon Hill’s path toward long-term, financial stability has been indispensable. Their tireless effort, creativity and…