AUSTIN, Texas — Ziegler has arranged $94.7 million in bond financing for Longhorn Village, a 310-unit continuing care retirement community in Austin.
The alumni association of the University of Texas sponsors the nonprofit community, which is located on 55 acres. The property features 214 entrance-fee independent living units, 20 assisted living suites, 16 memory support suites and 60 skilled nursing beds.
Originally, Brazos Presbyterian Village Inc. was set to acquire Longhorn Village. However, the recently implemented Tax Cuts and Jobs Act eliminated advance-refunding transactions, which caused the buyer and seller to re-assess the proposed deal. The bond refinancing will allow the two parties to revisit the transaction in six months, with Brazos holding a purchase option.
Proceeds from the bonds will advance refund $85.1 million of Longhorn Village’s 2012 bonds, as well as funding $2 million for routine capital expenditures and a debt service reserve fund. The refinancing provides significant interest savings, according to the borrower.