COVINGTON, La. — Ziegler, a specialty investment bank, has closed the $33,080,000 non-rated, tax-exempt, fixed-rate Series 2014 Bonds for Christwood, a Louisiana not-for-profit corporation.
Christwood was incorporated in 1991 and owns and operates a “Type B” continuing care retirement community known by the same name. Located on approximately 125 acres in Covington, La., Christwood opened in May of 1996. Currently, the community consists of 161 independent living residences, of which there are 143 apartments and 18 cottages, 34 assisted living units, 30 skilled nursing beds, and related common areas, amenities and recreational areas. Since 1999, the Christwood has engaged Life Care Services, LLC as its management company.
The Series 2014 Bonds will be used to refund the outstanding Series 1998 Bonds, refund an outstanding bank loan, pay a termination fee on an interest rate swap associated with the bank loan, provide $6 million towards campus improvements including the construction of a 28-unit memory care facility, fund a debt service reserve fund and pay a portion of the costs of issuance. Ziegler previously served as the sole underwriter for Christwood’s Series 1995 and 1998 Bonds.
By capitalizing on the reduced interest expense from the refinancing component and extending the final maturity by five years, we were able to obtain the $6 million in required funding for Christwood’s memory care expansion without increasing annual debt service from prior levels,” says Brandon Powell, director of Ziegler’s senior living practice.