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Vicar's Landing sims underwrites bbb rated current refunding for vicar's landing – financing provides $877,000 annual cash savings On February 15, 2007, Sims closed a refinancing for Life Care Ponte Vedra, Inc., owner of Vicar’s Landing , providing the community with average annual debt service savings of $877,000 through 2017. This is Sims’ third financing for Vicar’s Landing and its sixth for Life Care Pastoral Services, Inc., the parent organization for both Vicar’s Landing and Glenmoor , a lifecare CCRC in St. Augustine, Florida. In September 2006, Sims structured and underwrote an advance refunding issue for Glenmoor, providing approximately $30 million in debt service savings through 2030, an average of $1.2 million annually. Vicar’s Landing is a lifecare continuing care retirement community located within Sawgrass, a private resort residential community in Ponte Vedra Beach, Florida, near Jacksonville. The community includes 227 independent living apartments and patio homes, a 38-suite assisted living building and a 60 bed skilled nursing center. Vicar’s has been accredited since 1998.
In 1998, Vicar’s Landing received an investment grade rating of BBB- from Standard & Poor’s in connection with remarketing of its adjustable rate bonds. With the development of Glenmoor, however, beginning in 1999 Vicar’s Landing committed a total of $5.5 million of development and working capital to the new community. Because of this perceived liability, in 2001 Standard and Poor’s dropped the rating to BB. The rating was subsequently cancelled at Vicar’s Landing’s request. As of September 30, 2006, coverage of Vicar’s 1993 bonds was 1.49, and liquidity exceeded 330 days’ cash on hand. In conjunction with the planned current refunding, with the assistance of Sims, Vicar’s Landing approached Fitch Investors Service and requested approval of a rating for the refunding bonds, based not only on the history, reputation and strong coverage and liquidity of the community, but also on the reduced risk related to the Glenmoor obligation, resulting from its high occupancy, strengthened financial performance and successful refinancing. In December 2006, Fitch approved a rating of BBB for the Series 2007 Bonds. The bonds were issued with a ten-year and twenty-year maturity and were sold by Sims to yield 4.60% and 4.88% to maturity respectively, resulting in annual cash flow savings through 2017 (the maturity date of the 1993 bonds) ranging from $859,000 to $932,000, despite inclusion in the financing of $3.5 million of funding for renovation of the community’s skilled nursing center. A summary table for the Vicar’s Landing financing may be found below:
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The corporation was formed in 1983 to develop and operate a continuing care community in the rapidly-growing beaches of north Florida. Sims underwrote tax-exempt bonds in 1987 to fund development and construction of Vicar’s Landing, which opened in 1988. After completion and a successful fill-up, Sims underwrote an advance refunding of the original bonds in 1993.
