Construction Financing

In November 2023 insured $10,915,000 of California Municipal Finance Authority Insured Revenue Bonds. Ararat owns and operates a Continuing Care Retirement Community (CCRC) in Mission Hills, California (Ararat Home), and a skilled nursing facility in Eagle Rock, California. In addition, Ararat Home recently acquired a CCRC in Glendale, California (Ararat Gardens). The three campuses in total offer 73 Independent Living units, 153 Assisted Living units, and 324 beds in three Skilled Nursing Facilities. The insured loan of $10,485,000 (the 2023 Bonds) will be used to partially reimburse the Corporation for the acquisition of Ararat Gardens in March 2023. The final maturity of the bonds is December 31, 2043 and the All-In True Interest Cost is 5.85 percent. The insured bonds were 3.1x oversubscribed with top accounts purchasing the bonds at close including; Allspring Funds Management, Goldman Asset Management, CapRe, American Century Investments, Belle Haven Investments and Thornburg Asset Management. The insured bonds were 1.7x oversubscribed with top accounts purchasing the bonds at close including; Loomis Sayles, Bessemer Trust, Bellehaven, Thornburg Investment Management and Templeton Financial Services.

• Bond Underwriter: Zeigler 
• Bond Counsel: Orrick, Herrington & Sutcliffe LLP

In August 2023 insured $67,065,000 of California Municipal Finance Authority Insured Revenue Bonds. Odd Fellows is a 501(c)(3) nonprofit public benefit corporation originally established in 1893 and provides housing and health care services to seniors at two continuing care retirement communities. This is a refinance plus $10M of new money for capital improvements at both campuses. The loan amortization is uniquely structured, with the refinance portion weighted over the first 19 years and the new money portion weighted over the last 11 years. The final maturity of the bonds is April 1, 2053 and the All-In True Interest Cost is 4.33 percent. Top accounts purchasing the bonds at closing included; Belle Haven Investments, Vanguard, Putnam, Eagle Asset Management and Allspring Fund Management and PIMCO.

• Bond Underwriter: D.A. Davidson & Co.  
• Bond Counsel: Orrick, Herrington & Sutcliffe LLP

In January 2023 insured $49,560,000 of California Municipal Finance Authority Insured Revenue Bonds. The Bethany Home Society owns and operates a lifecare retirement community in Ripon. The purpose of the insured loan is to: fund $45.8 million of the construction of an 82-unit expansion. The final maturity of the bonds is November 15, 2052 and the All-In True Interest Cost is 4.83 percent. The insured bonds were fully subscribed with top accounts purchasing the bonds at close including; Franklin Templeton, 16th Amendment Advisors, Bessemer Trust and First Trust.

• Bond Underwriter: Zeigler
• Bond Counsel: Orrick, Herrington & Sutcliffe LLP

In September 2022 insured $36,035,000 of California Municipal Finance Authority Insured Revenue Bonds for Carmel Valley Manor (the Manor). The Manor owns and operates a life care continuing care retirement community consisting of 146 independent living units, 24 assisted living units, and a 36-bed skilled nursing facility on a 25-acre campus in Carmel, Carmel Valley, Monterey County. The purpose of the insured loan is to: (i) refinance the outstanding $3.1 million balance of an existing bank term loan that is not insured by the Department of Health Care Access and Information (HCAI), (ii) fund $31.4 million of Facility capital improvements, (iii) fund capitalized interest, (iv) fund a debt service reserve, (v) fund the HCAI insurance premium, and (vi) fund the costs of issuance. The final maturity of the bonds is May 15, 2052 and the All-In True Interest Cost is 4.90 percent. The insured bonds were 1.4x oversubscribed with top accounts purchasing the bonds at close including; PIMCO and Bel Air Investment Advisors.

• Bond Underwriter: Zeigler
• Bond Counsel: Orrick, Herrington & Sutcliffe LLP

November 2016 insured $135,920,000 of California Statewide Communities Development Authority (CSCDA) Insured Revenue Bonds for Jewish Home of San Francisco. The bond proceeds will be used for the construction of two new buildings to be licensed as residential care facilities for the elderly and improvements of other buildings on campus. The final maturity of the bonds is November 1, 2046 and the All-In True Interest Cost is 4.42 percent. Additionally, in November 2021 insured $28,030,000 of CSCDA Insured Revenue Bonds. The San Francisco campus features a brand new 220-unit independent living building, and an acute psychiatric hospital and skilled nursing facility totaling almost 400 beds. The 2021 Bonds allow the Corporation to reimburse construction cost overages related to the recently completed residential building and capital improvement of the existing facility. The All-In True Interest cost inclusive of fees is 2.83 percent with a final maturity of November 2051. The total loan amount origination was $163,950,000.

• Bond Underwriter: Cain Brothers
• Bond Counsel: Orrick, Herrington & Sutcliffe LLP

October 2021 insured $12,295,000 of California Municipal Finance Authority Insured Revenue Bonds for La Maestra Community Clinic. The clinic is a Federally Qualified Health Center and serves more than 45,000 individuals annually, many of whom live in designated Medically Underserved Areas and are considered part of the Medically Underserved Populations in San Diego County. The new funding will be used to finance the acquisition and renovation of three new clinic sites in the San Diego area. La Maestra was able to lock in much lower interest rates than if it went into the bond market without Cal-Mortgage loan insurance. The 2021 bonds have a 30-year term, and an interest rate inclusive of all fees of 3.51 percent.

• Bond Underwriter: Piper Jaffray
• Financial Advisory: Wulff, Hansen & Co.
• Bond Counsel: Brian Quint – Quint & Thimmig LLP

February 11, 2021 insured $12,570,000 of San Benito Health Care District Insured Revenue Refunding Bonds for Hazel Hawkins Memorial Hospital. The new loan refinanced a prior Cal-Mortgage insured loan for the District who manages a 25 bed critical access hospital, a 119 bed skilled nursing facility, and three rural health clinics in San Benito County. The 2021 Bonds mature in 2029 and priced with an All-In True Interest Cost of 1.58 percent. The refinance will save the District over $380,000 in annual debt service payments, with a net present value savings of 10.0 percent.

• Lead Bond Underwriter: HilltopSecurities
• Financial Advisory: Gary Hicks
• Bond Counsel: Brian Quint – Quint & Thimmig LLP

June 13, 2019 insured $34,385,000 of California Municipal Finance Authority Insured Revenue Bonds for Town and Country Manor. The 2019 Bonds will finance the construction of a new 88 bed memory care facility at its existing multi-level continuing care retirement community located in Santa Ana, CA. The memory care project is expected to be completed in early 2021. Bond proceeds also used to refinance $7,00,000 in debt not currently insured by Cal-Mortgage.  The 2017 Bonds mature on May 15, 2049 and was priced with an All-In True Interest Cost of 3.98 percent. 

• Bond Underwriter: Cain Brothers
• Bond Counsel: Orrick, Herrington & Sutcliffe LLP

November 20, 2019 insured Refunding Revenue Bonds, Series 2019 for $4,300,000 for North Kern – South Tulare Hospital District.  The financing was used to refinance existing Insured 2010B Series Bonds, which had been used to construct and equip a new community clinic and reimbursed the District for an emergency generator at their skilled nursing facility. The 2019 Bonds mature in September 2040 and priced with an All-In True Interest Cost of 3.85 percent.  The net present value savings was 12.34 percent.

• Bond Underwriter: Piper Jaffray
• Bond Counsel: Brian Quint – Quint & Thimmig LLP

November 8, 2018 insured $6,375,000 of California Municipal Finance Authority Insured Revenue Bonds for Lincoln Glen Manor, a multi-level continuing care retirement community located in San Jose, CA. The 2018 Bonds will finance the conversion of 12 independent living units to 17 memory care units, in addition to other facility capital improvement projects at the community. The insured bonds mature in 2043 and the True Interest Cost is 3.81 percent.

• Bond Underwriter: Piper Jaffray and Hilltop Securities
• Financial Advisory: Grant Wilson
• Bond Counsel: Brian Quint – Quint & Thimmig LLP

May 24, 2018 insured $187,230,000 of California Statewide Communities Development Authority Bonds for Viamonte Senior Living. The 2018 Bonds will finance the construction of a new state-of-the-art 191-unit multi-level continuing care retirement community in Walnut Creek. By utilizing both short-term entry fee bonds and traditional 30-year maturities, the project was able to secure financing with an All-In True Interest Cost of 4.18 percent.

• Bond Underwriter: Bank of America Merrill Lynch
• Bond Counsel: Orrick, Herrington & Sutcliffe LLP

July 12, 2017 insured $5,250,000 of California Municipal Finance Authority Insured Refunding Revenue Bonds for St. John’s Well Child. The refunded bonds mature on December 1, 2041 and were priced with an All-In True Interest Cost of 3.76 percent. The refinance resulted in a net present value savings of $541,540.67 or, 11.02 percent.

• Bond Underwriter: Piper Jaffray
• Bond Counsel: Brian Quint – Quint & Thimmig LLP

April 18, 2017 insured $54,045,000 of California Municipal Finance Authority Insured Revenue Refunding Bonds for Channing House. The financing was used to refinance existing Insured 2010 Bonds, which had been used to construct a Health Center with 27 assisted living beds, a 26-bed skilled nursing facility, and to add an additional 14 independent living units to the residential tower. Channing House now has 191 independent living units. The 2017 Bonds mature on May 15, 2040 and was priced with an All-In True Interest Cost of 4.04 percent. The net present value savings was 9.4 percent.

• Bond Underwriter: Ziegler
• Bond Counsel: Orrick, Herrington & Sutcliffe LLP

On November 30, 2016 insured $22,080,000 of California Municipal Finance Authority Insured Revenue Bonds for Paradise Valley Estates. The 2016 Bonds financed the completion of 18 private memory care rooms, reimbursed project expenditures related to the construction of a parking structure, and refinanced its Insured 2005 Bonds. The refunded bonds mature in 2047 and the All-In True Interest Cost is 4.51 percent. The refinance resulted in a net present value savings of $669,945, or 7.6 percent.

• Bond Underwriter: Ziegler
• Bond Counsel: Orrick, Herrington & Sutcliffe LLP

November 3, 2016 insured $4,055,000 of California Municipal Finance Authority Insured Refunding Revenue Bonds for Hill Country Community Clinic. The financing was used to refinance existing bonds. The 2016 Bonds mature on November 1, 2037 and was priced with an All-In True Interest Cost of 3.46 percent. The net present value savings was 8.37 percent.

• Bond Underwriter: Piper Jaffray
• Financial Advisory: Gary Hicks
• Bond Counsel: Brian Quint – Quint & Thimmig LLP

September 13, 2016 insured $5,775,000 of California Health Facilities Financing Authority Insured Refunding Revenue Bonds for Petaluma Health Center. The 2016 Bonds refinanced an existing insured loan. The refunded bonds mature in 2040 and the All-In True Interest Cost is 3.14 percent. The refinance resulted in net present value interest savings of $1.06 million, or 19 percent.

• Bond Underwriter: Piper Jaffray
• Financial Advisory: Gary Hicks
• Bond Counsel: Brian Quint – Quint & Thimmig LLP