Sims Announces Successful Refinancing of The Legacy at Willow Bend


HJ Sims is pleased to announce the successful refinancing of The Legacy at Willow Bend Retirement Community, Inc., a Life Plan Community (CCRC) located on 24 acres in Plano, Texas, north of downtown Dallas. This is the latest of many Sims’ accomplishments in the Texas market, including the effective financing of Carillon in Lubbock, TX in July of this year. Sims is dedicated to the Texas region with a highly capable team of experienced bankers located in Austin and Dallas.

Sims structured this latest refinancing to generate significant cash flow savings and covenant flexibility. The operator (Legacy Senior Communities, Inc. or ‘Legacy’) also sought funds for the development of a new senior living community, Legacy at Midtown Park (to be located in Dallas, TX), among other objectives. Sims secured a Fitch “BBB-” rating for Legacy, and created flexibility to provide $4.5 million to support the proposed new campus.

Legacy had several strategic financing objectives that Sims was able to address. The objectives included reducing the overall cost of capital and annual debt service; improving cash flow; providing development capital for the Midtown Project to further advance Legacy’s mission, and to provide more attractive financial covenants and maintain financial flexibility. Specifically, Sims refinanced the 2006 bonds and worked with Legacy to secure a “BBB-” investment grade rating, with a stable outlook for the 2016 bonds. Sims priced the $45,355,000 refunding issue on July 12, 2016 at an aggressive rate despite upward interest rate pressure on the bond market at the time of the bonds pricing.  The 2016 bonds were successfully executed and priced with a 7-year call option providing greater flexibility to call or refinance the bonds prior to a standard 10-year call option. On a present value basis, the refunding saved Legacy approximately $6.285 million, or 12.4% of the par amount of the refunded bonds. On an annual basis, the refinancing saved Legacy more than $1.5 million through the final term of the prior bonds. All the while, Sims helped Legacy maintain an attractive credit profile with strong liquidity levels. Sims met all of the challenges presented in order to offer Legacy a solution for their project that was Financed Right®.”

“We are so pleased with Sims’ execution on our refinancing. Not only did the refinancing significantly reduce the debt service burden and generate significant cash flow savings for our Legacy at Willow Bend campus, but the refinancing will allow us to provide $4.5 million to extend Legacy’s  mission through the development of our Midtown Park project,” said Brian Barnes, Legacy’s Chief Financial Officer and Chief Operation Officer.

“This refinancing is the epitome of Sims’ “Financed Right” approach, says Aaron Rulnick, Managing Principal of HJ Sims.  We understood the importance of our client’s goals at the outset of the refinancing to not only enhance the financial foundation of its existing campus, but to help grow its mission through supporting the development of a new campus. We were able to execute on these goals by maximizing the new rating on the bond issue and aggressively pricing and underwriting bonds to ensure the lowest interest rate for our client.  The flexibility and creativity of our banking team, along with our senior living industry expertise, and successful distribution of the bonds through Sims’ private client group and institutional advisors, resulted in both short- and long-term cost savings as well as long-term flexibility for Legacy

For more about HJ Sims and how we can offer you Financed Right® solutions, please contact Aaron Rulnick at | 302.424.9135 or Brett Edwards at | 512-519-5001 or Jimmy Rester at | 512-519-5006.

ABOUT HJ SIMS: Founded in 1935 on Wall Street, HJ Sims is celebrating more than 80 years of service as a privately held investment bank and broker-dealer with approximately $2.0 billion of assets under management. HJ Sims is known as one of the country’s oldest underwriters of tax-exempt and taxable bonds, having raised approximately $21 billion for projects throughout the US. The firm is headquartered in Fairfield, Connecticut, with investment banking, private client wealth management and trading offices in Maryland, Massachusetts, Florida, Minnesota, New Jersey, Pennsylvania, Texas and Puerto Rico. Pershing LLC, a subsidiary of The Bank of New York Mellon Corporation, is custodian of all client assets. For more information, please visit: Investments involve risk, including the possible fluctuation of principal. Member FINRA/SIPC®. Follow HJ Sims on Facebook, Twitter and LinkedIn.

The material presented here is for information purposes only and is not to be considered an offer to buy or sell any security. This report was prepared from sources believed to be reliable, but it is not guaranteed as to accuracy, and it is not a complete summary or statement of all available data. Information and opinions are current up to the date of publication and are subject to change without notice. The purchase and sale of securities should be conducted on an individual basis considering the risk tolerance and investment objective of each investor and with the advice and counsel of a professional advisor. All investments involve risk and may result in a loss of principal. Investors should carefully consider their own circumstances before making any investment decision. This is not a solicitation to buy or an offer to sell any particular investment.

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