Menorah Park: An Exclusive Investment Opportunity

$33,545,000*
STATE OF OHIO HIGHER EDUCATIONAL FACILITY COMMISSION
HEALTHCARE REVENUE BONDS, SERIES 2018
(MENORAH PARK OBLIGATED GROUP)
Series 2018

HJ Sims is pleased to take indications of interest for these tax-exempt municipal bonds for Menorah Park Obligated Group, an Ohio-based not-for-profit corporation providing a variety of programs geared toward the delivery of Assisted Living, Skilled Nursing, Independent Living, Memory Care and other health care services for the elderly living in the Campus or in their own homes. Menorah Park owns and operates a rental senior living community consisting of a skilled nursing facility (355 dually certified beds), two licensed residential care facilities comprised of Stone Gardens (118 units) and Wiggins Place (145 units), and a senior independent living facility known as R.H. Myers Apartments (193 units). Menorah Park also operates three home health care offices in Northeast Ohio, outpatient rehabilitation services including physical, speech, occupational and aquatic therapy, a clinical model adult daycare service, and other community services. Menorah Park is the Obligated Group Representative. Due to favorable interest rates, Menorah Park is refinancing its existing debt to position the Organization for long-term stability and future growth.

About the Bonds

  • Non-Rated
  • The Series 2018 Bonds are exempt from Federal income Tax, as well as Ohio State and Local Income Tax
  • Denominations: $5,000, or any integral multiple thereof
  • Interest Payment Dates: January 1 and July 1, commencing July 1, 2019
  • Principal Payment Dates: January 1, commencing January 1, 2020
  • Final Maturity: January 1, 2048

Use of Proceeds

  • Refund all outstanding principal amount of: Series 2007 GNMA (Collateralized bonds (R.H.Myers); Series 2010 Direct Bank Placed Mortgage Revenue Bonds (Stone Gardens); Series 2012 Direct Bank Placed Mortgage Revenue Bonds (Wiggins Place); Commercial bank used to finance improvements to the HVAC system at the Nursing Home
  • Finance certain capital improvements (see “2018 Project” in the Preliminary Official Statement)
  • Fund a Debt Service Reserve Fund for the Series 2018 Bonds
  • Pay certain costs of issuance of the Series 2018 Bonds

Security

  • Mortgage: The Series 2018 bonds will be secured by a first lien and security interest (the “Mortgage”) on land, buildings, fixtures, furnishings and equipment that comprise the entire 32.6-acre campus
  • Gross Revenue Pledge: The Menorah Park Obligated Group will also grant a first security interest in its Gross Revenues (i.e. accounts receivable, income, etc., excepts as limited by applicable laws or regulations)
  • Debt Service Reserve Fund: A Debt Service Reserve Fund will be funded from proceeds of the Series 2018 Bonds in an amount equal to the Maximum Annual Debt Service on the Series 2018 Bonds

Key Financial Covenants

  • Debt Service Coverage Ratio of 1.15x (tested annually)
  • Liquidity Covenant – Unrestricted cash and investments of the Menorah Park Obligated Group may not be less than 4$.5 million (tested semi-annually)

We are currently accepting indications of interest for these non-rated, tax-exempt healthcare revenue bonds with an expected pricing November 7, 2018 and anticipated settlement December 6, 2018. For more information including risks, please read the Preliminary Official Statement in its entirety. If you have interest in purchasing these Series 2018  bonds from this 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 Menorah Park.

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