Beatitudes: Investment Opportunity

$70,965,000*
The Industrial Development Authority of the City of Glendale, Arizona
Refunding and Revenue Bonds
(The Beatitudes Campus Project)
Series 2017

HJ Sims is pleased to serve as underwriter for the upcoming issue of non-rated refunding and revenue bonds for the Industrial Development Authority of the City of Glendale, Arizona (The Beatitudes Campus Project).

About the Bonds

  • Senior Manager: Ziegler Capital Markets; Co-Managers: BB&T Capital Markets and HJ Sims
  • Non-Rated
  • Use of proceeds: refund outstanding Arizona Health Facilities Authority Health Care Facilities Revenue Bonds (The Beatitudes Campus Project) Series 2006; finance certain pre-development costs for an expansion project; fund a Debt Service Reserve Fund; pay the costs of issuance of the Series 2017 Bonds
  • Denominations: $5,000 and any integral multiple of $5,000 in excess thereof
  • Principal: Payable annually on November 15, commencing November 15, 2022 with final maturity on November 15, 2045.
  • Interest: Payable semi-annually on May 15 and November 15, commencing May 15, 2018
  • Security: First mortgage on the Community; Pledge of and lien upon Gross Revenues; DSRF
  • Covenants:
  • Debt Service Coverage Ratio: 1.20x, tested annually within 150 days of fiscal year end.
  • Event of default if (i) debt service coverage ratio is less than 1.00x for any fiscal year and days cash on hand is below 250, or (ii) debt service coverage ratio is less than 1.00x for two consecutive fiscal years.
  • Days Cash on Hand Covenant (Tested semiannually with step-up requirements as follows): 65 days beginning with the initial testing date of March 31, 2018; 80 days as of September 30, 2019 – 110 days as of September 30, 2020; 95 days as of September 30, 2021; 125 days as of September 30, 2022 and thereafter

About the Beatitudes Campus

  • The Beatitudes Campus (the “Community”), founded in 1964, is an AZ nonprofit corporation that owns and operates a CCRC on approximately 25 acres in north central Phoenix, home to over 600 residents. The Community consists of a total of 651 residences/beds, including 188 entrance fee IL apartments, 11 entrance fee IL patio homes, 259 rental IL apartments, 92 AL units, 29 MC units and 72 skilled nursing beds (as delineated here, 57% of IL units are rental units, and 43% are entrance fee units).
  • The Community is sponsored by the Church of the Beatitudes, a United Church of Christ Congregation (the “Church”).
  • With the proceeds of the Series 2006 bond issue, Beatitudes undertook a major redevelopment of the Community which was completed in 2009 which included: (i) the renovation of existing buildings; (ii) the construction of 199 new entrance fee IL homes, including 188 IL apartments and 11 patio homes; (iii) the construction of a new town plaza; and, (iv) the construction and equipping of a new central power plant and maintenance building for the Community. Beatitudes also expanded its offerings of Alzheimer’s care services at that time.

We are currently accepting indications of interest for these non-rated refunding and revenue bonds with an expected pricing date during the week of December 11 and anticipated settlement date before the end of the year. For more information including risks, please read the Preliminary Official Statement in its entirety.  If you have interest in purchasing Bonds in the new issue, please contact your HJ Sims financial advisor as soon as possible or call 877-577-3365. 

*Subject to change

No dealer, broker, salesperson, or other person has been authorized to give any information or to make any representation other than those contained in the Preliminary Official Statement, and, if given or made, such other information or representation should not be relied upon as having been authorized by the Issuer, the Borrower, or the Underwriters. The information set forth herein has been obtained from the Issuer, Borrower, and other sources that are believed to be reliable, but is not guaranteed as to accuracy or completeness by, and is not construed as a representation of, the Underwriters. The information contained herein is subject to change without notice. Under no circumstances shall this constitute an offer to sell or solicitation of an offer to buy, nor shall there be any sale of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. Any offering or solicitation will be made only to investors pursuant to the Preliminary Official Statement, which should be read in its entirety. Investments involve risk including the possible loss of principal. HJ Sims is a member of FINRA and SIPC and is not affiliated with Beatitudes or The Industrial Development Authority of the City of Glendale, Arizona.
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