Ziegler closes series of bonds for Arizona client
Ziegler announced the closing of the non-rated, fixed-rate $32.8 million tax-exempt Series 2014A and $260,000 Taxable Series 2014B Bonds for the Sierra Winds Life Care Community Project.
Arizona Retirement Centers owns and operates Sierra Winds, a continuing care retirement community. Sierra Winds owns and operates a 310-unit “Type A” Life Care community on a 20-acre campus in Peoria, AZ, which includes 70 skilled care beds, 18 of which are Medicare-certified. Sierra Winds is currently managed by Life Care Services.
Sierra Winds will use the proceeds of the sale of the bonds and other available funds to currently refund $26.86 million of outstanding Series 1999 Bonds, finance certain improvements to and rehabilitation of the community, fund a debt service reserve fund, and pay certain expenses incurred in connection with the issuance of the bonds.
The 2014 Bonds were structured to extend the existing final maturity from 2032 to 2040, creating capacity to fund nearly $6 million in new money without increasing annual debt service, Ziegler said. An additional $900,000 of capital expenditure funds were generated through breakage of two non-transferable investment contracts related to the Series 1999 Bond funds.