HJ Sims Successfully Completes $186.5 Million Transaction for Start-up Rental Continuing Care Retirement Community in Dallas, TX

PR Newswire

FAIRFIELD, Conn., Oct. 16, 2018 /PRNewswire/ -- HJ Sims (Sims), a privately held investment bank and wealth management firm founded in 1935, is pleased to announce the successful September 2018 closing of a $69,875,000 bond underwriting, $70,450,000 financing, and $14,000,000 subordinate financing for Legacy Midtown Park (Legacy), a Jewish-sponsored, not-for-profit, start-up rental CCRC located in Dallas, TX, and managed by Legacy Senior Communities. Legacy will be comprised of 325 total units, including independent and assisted living, and memory support residences, and a health care center with nursing beds. In August 2016, Sims successfully completed a $45,355,000 financing for Legacy at Willow Bend (Willow Bend), a sister community in Plano, TX. As of June 2018, Willow Bend's occupancy was 95%; the bonds are presently rated BBB- by Fitch.

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Without future entrance fee cash flow to deleverage, the structuring of the Legacy financing required a creative solution. Goals included minimization of debt service and assurance of adequate contingencies and reserves, and optimization with the appropriate mix of bond and bank debt, while managing and balancing requirements of the banks and bondholders. This included non-rated, fixed rate bonds, bank purchased draw-down bonds, and a subordinate financing with cash equity contribution.

Sims generated significant demand for the bonds via its extensive private client and institutional network, achieving lower yields and savings of $220,000+. The final structure included $69.875 million of tax-exempt, fixed rate bonds, and $70.450 million of tax-exempt, draw-down bank bonds. Legacy also identified a single purchaser of $14 million of subordinate bonds. Legacy benefited from $34.712 million in equity from a combination of campaign pledges, cash-on hand, and proceeds from sales of assets. The Dallas Community Foundation provided a loan up to $5.75 million as a bridge. Dallas Home for Jewish Aged Endowment Foundation, Inc. executed a Guaranty Agreement pledging about $11.79 million of its unrestricted funds until project reaches stabilization.

With Sims' leadership, in collaboration with the working group, Legacy realized its goals of funding project construction and maintaining adequate contingencies, achieving strong debt service coverage, minimizing annual debt service and reserve requirements, and positioning the project for the long-term.

"The Legacy financing utilized a complex, layered structure to ensure our much anticipated state of the art community becomes a reality. Without the extraordinary and creative talents of the HJ Sims team, we most definitely would not have been able to achieve such a successful outcome. Sims exhibited tremendous leadership and perseverance in leading a team of 40+ to ensure our financing was completed in an effective and timely fashion, and we are extremely pleased with the results," said Melissa Orth, President and CEO of The Legacy Senior Communities.

For Financed Right^® solutions, contact Aaron Rulnick: [email protected] | 301.424.9135 or Jimmy Rester: [email protected] | 214.559.7175 or John Williford: [email protected] | 214.903.4459.

ABOUT HJ SIMS: Founded in 1935 on Wall Street, HJ Sims is a privately held investment bank and wealth management firm with $2.2 billion of assets under management. HJ Sims is known as one of the country's oldest underwriters of tax-exempt and taxable bonds, having raised $25+ billion for projects throughout the US. The firm is headquartered in Fairfield, Connecticut, with nationwide investment banking, private client wealth management and trading locations. HJ Sims is not affiliated with Legacy Senior Communities. Visit www.hjsims.com/ourstory. Investments involve risk, including the possible fluctuation of principal. Member FINRA, SIPC. Follow HJ Sims on Facebook, LinkedIn and Twitter.

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