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Ziegler Secures Financing for United Methodist Retirement Homes

Ziegler, a leading investment bank specializing in senior living financing, has announced the successful closure of $92,125,000 in bonds for the United Methodist Retirement Homes (UMRH). This financial move is pivotal for the expansion of UMRH's services across its communities in North Carolina, enhancing the living conditions for countless residents.

The bonds—structured in three series (2025A, 2025B, and 2025C)—are expected to be instrumental in the ongoing growth of UMRH, which has been operating since 1945 and manages significant retirement communities across the state. With three Life Plan Communities, UMRH serves a diverse range of residents through 688 independent living units and various care options including assisted living and memory care facilities.

Overview of UMRH and Its Services

UMRH has built a reputable presence in the senior living industry, ranking as the third-largest nonprofit senior living operator in North Carolina. Its communities—Croasdaile Village in Durham, Wesley Pines in Lumberton, and Cypress Glen in Greenville—collectively cater to a wide array of senior needs, making them essential components of the community fabric.

Ziegler’s Managing Director, Tommy Brewer, stated, “Being associated with UMRH for over 25 years, I’ve witnessed its campuses flourish. The Series 2025 Bonds will provide the vital capital for Croasdaile Village and Wesley Pines to serve a greater number of residents with enhanced facilities.”

Detailed Breakdown of the Bond Structure

The bond financing comprises:

• - Series 2025A Long-Term Bonds ($52,825,000) – These long-term bonds are rated BBB by Fitch Ratings, featuring a final maturity in 2056. They incorporate a wrapped debt service structure, providing a weighted average maturity of 25.8 years and a blended average yield to maturity of 5.07%.
• - Series 2025B Tax Exempt Mandatory Paydown Securities ($26,300,000) – This short-term financing is also rated BBB and is structured for repayment through entrance fees from new independent living units at Croasdaile Village. The Series 2025B includes several sub-series based on expected redemption with an average maturity of 2.2 years and coupon rates between 3.40% to 3.75%.
• - Series 2025C Long-Term Bank Bonds ($15,000,000) – This variable rate tranche is being purchased by Truist Commercial Equity, Inc., continuing their enduring partnership with UMRH.

Future Developments and Community Benefits

With the proceeds from these bonds, UMRH plans to enhance its infrastructure significantly. At Croasdaile Village, 58 new independent living units will be introduced, all of which have already been pre-sold. Additionally, there will be renovations to common areas including a gym, staff lounge, and an update to the kitchen and dining facilities. At Wesley Pines, proposed expansions include converting semi-private nursing rooms to private ones and enhancing therapy suites.

The timeline for these projects reflects a commitment to quality and service, further solidifying UMRH's role as a community leader in senior living.

Ziegler remains dedicated to providing tailored financial solutions for nonprofit senior living providers. Their extensive experience in the sector, encompassing investment banking, financial risk management, and strategic planning, enables them to meet unique client needs effectively.

For more insights on Ziegler’s full range of services and ongoing initiatives within the senior living sector, visit Ziegler's Website.

In conclusion, Ziegler’s successful bond closure not only illustrates a significant investment in senior living but also highlights the dedication to enhancing the quality of life for residents across UMRH's communities.