Olmsted Township-based Eliza Jennings, a not-for-profit corporation that owns and operates three Ohio senior living campuses, has closed a $24.4 million bond financing.
The Series 2022A financing, managed by boutique Chicago investment bank Ziegler, consists of tax-exempt, fixed-rate bonds structured to achieve level debt service with a 20-year final maturity of May 15, 2042. The bonds were issued in conjunction with the Series 2022B Bonds, which were variable rate interest bonds directly placed with an unnamed Ohio bank.
The Series 2022A and Series 2022B Bonds were structured to achieve a pro-forma 50%-50% mix of fixed interest rate exposure to variable interest rate exposure upon closing. Eliza Jennings made a $7.5 million equity contribution to the financing to de-lever the organization. The contribution was structured to maintain 200 days cash on hand on a pro-forma basis post-closing.
The bonds grant a security interest in the gross revenue of Eiiza Jennings and a first mortgage lien on its campuses, according to Fitch. A fully-funded debt service reserve also provides additional security for the series 2022A bonds.
Concurrent with the offering, Eliza Jennings received its first public credit rating of BB+ from Fitch Ratings, which Ziegler said helped favorably price the bonds during volatile capital markets. The rating resulted in an average yield of 5.356% on the Series 2022A Bonds.
