Ziegler Successfully Completes Financing for Messiah Lifeways with Over $82 Million Raised

Ziegler Successfully Completes Financing for Messiah Lifeways

Introduction
Ziegler, a renowned investment bank, has successfully facilitated a financing deal for Messiah Lifeways, accumulating a staggering $82,320,000 through its Series 2026A bonds. Messiah Lifeways, a Pennsylvania-based non-profit, has been turning heads in the senior living sector, and this substantial capital will fund important developments and refinements within their service offerings.

Messiah Lifeways: A Brief Overview
Established in 1896 and formerly located in Harrisburg, Messiah Lifeways has burgeoned into a leading elderly care provider since relocating to its current campus in Mechanicsburg in 1978. The organization encompasses Messiah Village, a life plan community that caters to over 700 seniors over an expansive 85-acre campus. The comprehensive array of services available includes residential living, skilled nursing, personal care, and memory support, all conducive to enhancing the quality of life for older adults.

The Financing Details
The Series 2026A bonds come with a rating of 'BBB-' and a stable outlook from Fitch Ratings, reinforcing their robustness in the municipal finance market. The funding generated will serve multiple purposes: refinancing existing long-term debts, reimbursing acquisition costs associated with the future Fernecrest project, and covering various expenses linked to the issuance of these bonds.

A significant aspect of this financing strategy involves extending the maturities of the previously refunded debts. The goal is to achieve a uniform annual debt service structure that includes reimbursement for new money. Additionally, this move opens up fresh avenues for financing the ongoing development at the Fernecrest campus, hastening the construction timeline. With a structured plan, the Series 2026A bonds carry a final maturity period of 30 years, featuring a blended yield to maturity of 5.26%.

The Vision Ahead: Fernecrest Project
One of the cornerstones of this funding will be the much-anticipated Fernecrest project, located just six miles from the main Messiah Village site. This new facility will initially feature 56 apartments and 79 cottages, along with community and dining spaces, all aimed at promoting a supportive and active senior lifestyle. With a total investment projected at around $75 million, this project marks an exciting expansion for Messiah Lifeways.

Tommy Brewer, Managing Director at Ziegler's Senior Living Finance Practice, praised the collaboration with Messiah Lifeways, stating that their cooperative efforts were instrumental in closing this transaction within just 45 days. The results have solidified Messiah Lifeways' financial outlook and provided essential resources to support their future growth strategies.

Conclusion
Ziegler's adept handling of the Series 2026A bond issuance reflects their commitment to aiding not-for-profit senior living providers like Messiah Lifeways. As the organization gears up for its expansion and continues serving the aging population, this financing marks a pivotal step towards a brighter, innovative future in senior living. The successful closure of this financing exemplifies Ziegler's dedication to delivering tailored financial solutions within the rapidly evolving landscape of senior care.

For more insights on Ziegler's services and offerings, visit www.ziegler.com.