CHICAGO, Sept. 23, 2024 /PRNewswire-PRWeb/ -- Ziegler, a specialty investment bank, is pleased to announce the successful closing of the Eskaton Obligated Group's $82,895,000 Series 2024 Bonds (the "Bonds") through the California Municipal Finance Authority.
Eskaton, a California nonprofit public benefit corporation, is a regional aging services provider dedicated to enhancing the lives of older adults throughout Northern California for over 55 years. Eskaton was incorporated in 1967, as a California nonprofit public benefit corporation with beginnings in skilled nursing and acute care hospitals. Today, Eskaton and its related subsidiaries own or manage 25 senior housing communities with living options that include independent living, assisted living, memory care, skilled nursing, and affordable housing.
The Eskaton Obligated Group is made up 3 Members consisting of 5 communities, as follows:
- Eskaton Properties, Incorporated (consisting of Eskaton Village Carmichael, Eskaton Land Park and Eskaton Gold River)
- Eskaton Village-Grass Valley
- Eskaton Village-Roseville
The Series 2024 Bonds (the "Bonds") have a first-time rating of "BBB" by Fitch and were issued through the California Municipal Finance Authority. The Bonds consist of long-term tax-exempt fixed interest rate bonds achieving level debt service with a 20-year final maturity (November 15, 2044).
The proceeds of the Bonds, together with other available funds, to finance the capital improvements across the Obligated Group communities, refund all existing debt (Series 2012, 2013, and 2022 Bonds), pay a swap termination payment; and pay certain costs incurred in connection with the issuance of the Bonds.
Mark Jenkins, Senior Vice President, Chief Financial Officer, Eskaton stated, "Through our partnership with Ziegler, we've been able to secure a bond structure that generates $2.3 million in annual debt service savings and $2.8 million in net present value savings. This will help position Eskaton for long-term stability and growth."
Sheri Peifer, President and Chief Executive Officer, Eskaton added, "We are excited about what this new financing enables for Eskaton's future. The $20M in new funds will allow us to enhance our communities, improve our services, and continue our mission to enhance the lives of older adults across Northern California."
Sarkis Garabedian, Managing Director, Ziegler Senior Living Finance stated, "We are thrilled to have partnered with Eskaton in optimizing their capital structure as they embark on the next phase of their strategic plan. This financing serves as a cornerstone for the organization's future growth, significantly reducing annual debt service, enhancing flexibility within their legal framework and improving financial covenants. We look forward to witnessing Eskaton's continued success."
Ziegler is the nation's leading underwriter of financings 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, seed capital, FHA/HUD, capital and strategic planning as well as senior living research, education, and communication.
For more information about Ziegler, please visit us at http://www.ziegler.com.
About Ziegler:
Ziegler is a privately held, national boutique investment bank, capital markets and proprietary investments firm. It has a unique focus on healthcare, senior living and education sectors, as well as general municipal and structured finance. Headquartered in Chicago with regional and branch offices throughout the U.S., Ziegler provides its clients with capital raising, strategic advisory services, fixed income sales, underwriting and trading as well as Ziegler Credit, Surveillance and Analytics. To learn more, visit http://www.ziegler.com.
Certain comments in this news release represent forward-looking statements made pursuant to the provisions of the Private Securities Litigation Reform Act of 1995. This client's experience may not be representative of the experience of other clients, nor is it indicative of future performance or success. The forward-looking statements are subject to a number of risks and uncertainties, in particular, the overall financial health of the securities industry, the strength of the healthcare sector of the U.S. economy and the municipal securities marketplace, the ability of the Company to underwrite and distribute securities, the market value of mutual fund portfolios and separate account portfolios advised by the Company, the volume of sales by its retail brokers, the outcome of pending litigation, and the ability to attract and retain qualified employees.
Media Contact
Christine McCarty, Ziegler, 3125961617, [email protected], www.ziegler.com
SOURCE Ziegler
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