January 16, 2017
Ziegler, a specialty investment bank, is pleased to announce the successful closing of the $22,080,000 fixed-rate Series 2016 Bond issue for Paradise Valley Estates, a new client to Ziegler. Northern California Retired Officers Community (NCROC or the Corporation) is a California not-for-profit corporation and 501(c)(3) organization that owns and operates a continuing care retirement community named Paradise Valley Estates (PVE).
PVE is located on 76 acres in Fairfield, California, and consists of 199 residential living houses, 123 residential living apartments, 40 social-model assisted living apartments, 28 medical-model assisted living units, and 60 skilled nursing beds. Approximately 75% of PVE residents are retired military officers, holding true to its founding of serving retired officers and their families.
Proceeds from the sale of the Series 2016 Bonds will be used to: (i) refund $8,850,000 of outstanding Series 2005 Bonds; (ii) fund the construction of a parking structure and an 18-bed memory care expansion to be added to the existing Quail Creek assisted living building; and (iii) pay certain costs associated with the issuance of the Bonds, including insurance.
The Series 2016 Bonds carry Cal-Mortgage’s enhanced rating of “AA minus” from S&P. The Bonds consist of $22,080,000 in serial and term bonds, and amortize over a 30-year period ending January 1, 2047. The portion allocated toward the refinancing does not extend the final maturity of the 2005 Bonds; the portion allocated to the new money wraps around the refunding portion in years 2032 through 2047. The arbitrage yield, or average yield to call in this case, was 4.208%.
“Paradise Valley Estates is a beautiful community north of the San Francisco Bay Area,” commented Mary Muñoz, Managing Director in Ziegler’s senior living finance practice. “The PVE team is doing all the right things to keep the community competitive and well-positioned for the future. We at Ziegler are pleased to have been able to help them take the next steps to secure PVE’s future.” Neil Calhoun, Chief Financial Officer of PVE, added “bond issuance is a very complex process; without Mary Muñoz and the Ziegler team we could never have gotten through the process with such positive results.”
Ziegler is one of the nation’s leading underwriters of financing for not-for-profit senior living providers. Ziegler offers creative, tailored solutions to its senior living clientele, including investment banking, financial risk management, merger and acquisition services, investment management, seed capital, FHA/HUD, capital and strategic planning as well as senior living research, education, and communication.