Monday, January 30, 2023

Ziegler Closes on Financing for WindsorMeade

Investment bank Ziegler has announced a successful closing for financing for WindsorMeade Williamsburg (WYDaily File)

WILLIAMSBURG — Investment bank Ziegler has announced the successful closing of financing for Virginia United Methodist Homes of Williamsburg, Inc. (VUMH), also known as WindsorMeade Williamsburg in James City County.

The closing of Series 2021A, Series 2021B Bonds and 2021 Taxable Loan (2021 Financing) was secured at a final closing of $58,240,000.

The Series 2021A Bonds were non-rate tax-exempt fixed rate bonds and the Series 2021B Bonds and 2021 Taxable Loan were directly placed into a trust. In a release, Ziegler notes that proceeds from the entirety of the 2021 Financing will be used to:

  • Refinance existing debt obligations
  • Finance approximately $3 million capital expenditures at WindsorMeade
  • Fund a debt service reserve fund for the Series 2021A bonds
  • Fund the cost of an interest rate cap
  • Pay associated costs of issuance

VUMH, doing business as (DBA) Pinnacle Living, is a not-for-profit corporation which was incorporated in 2003, which owns and operates the WindsorMeade Williamsburg. The community sits on a 105-acre campus with fourteen assisted living units, eighteen memory support units, twenty-two Medicare-certified skilled nursing beds, and 181 independent living units.

“We are extremely proud to once again assist WindsorMeade in securing an optimal financing structure,” Ziegler Senior Living Finance Managing Director Tommy Brewer. “The 2021 Financing was able to reduce the organization’s cost of capital and annual debt service as well as create a legal structure that will enhance WindsorMeade’s flexibility for future strategic initiatives.”

According to Ziegler, VUMH faced liquidity and occupancy challenges in 2013. At that time, WindsorMeade reached an agreement with a majority of its secured creditors to restructure and refinance its debt obligations from 2007, utilizing finance construction. In order to implement said restructuring, WindsorMeade pursued a voluntary Chapter 11 reorganization. Since then, Ziegler notes that WindsorMeade’s financial performance and occupancy has “materially improved.”

Ziegler is a privately-held national boutique investment bank, capital markets and proprietary investments firm. It is a leading underwriter for financing for not-for-profit senior living providers.

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