Sims Successfully Leads $98 Million Fixed Rate Refunding, Capturing Interest Rate Savings, Providing Additional Debt Capacity for an Expansion


MAY 31, 2017

CONTACT: Tara Perkins, PR & Marketing Specialist | 203-418-9049 |

Sims Successfully Leads $98 Million Fixed Rate Refunding, Capturing Interest Rate Savings, Providing Additional Debt Capacity for an Expansion

FAIRFIELD, CT– HJ Sims (Sims), a privately held investment bank and wealth management firm founded in 1935, is pleased to announce the successful completion of a $98,000,000 financing in April 2017 for Brethren Village (Brethren), a Life Plan Community located in Lancaster, PA.

In mid-2016, Brethren engaged Sims to serve as Senior Managing Underwriter for the proposed refinancing of the Series 2008 Bonds. Sims was also asked to work collaboratively with Brethren Village’s independent municipal advisor in coordinating pairing of the refinancing with financing for a proposed independent living unit expansion project (Northside Court Project).

Multiple options were considered for sourcing the refinancing and financing for new capital needs, including the use of all bond financing and the potential combination of bond and bank financing with Sims modeling several scenarios along with alternate timing options for the refinancing with the call date approaching. HJ Sims coordinated the solicitation of a rating from Fitch Ratings, with Fitch ultimately assigning a BB+ rating, the highest in the below-investment-grade category, along with a Stable outlook based on Brethren’s long-standing history, modern campus and strong operating and financial performance.

The financing consisted of BB+ rated, fixed rate Series 2017 refunding bonds, structured with serial and term bonds, a 25-year final maturity and level annual debt service. The 2017 refunding bonds include optional redemption provisions of 10 years (at par) to enable Brethren to repay the bonds prior to maturity. The Northside Court project financing was structured as a variable rate tax exempt direct placement with one bank. The term of the bank commitment is 10 years and has a 25 year principal amortization.

Given Brethren’s excellent reputation and credit profile and strong investor demand, the bonds were sold to retail and institutional investors, favorably impacting the fixed interest rates and financing cost. The 2017 refinancing produced approximately $16 million in net present value savings, which equals 15.9% savings of the refunded bonds. Sims served as senior managing underwriter and worked collaboratively with two co-managers and a third selling group member to broaden the distribution of the bonds to the benefit of Brethren Village.

“Jim Bodine and Brethren Village have had a valued working relationship for years so it was an easy decision to work with Sims for our refinancing. The Sims team skillfully guided us through the process from the initial discussions to the issuance of the bonds in a tenuous market. Their efforts allowed us to have a very successful refinancing that will benefit our organization for many years,” said Rodney L. Martzall, CPA, Vice President of Finance /CFO, Brethren Village.

For Financed Right® solutions, contact Jim Bodine: | 215-854-6428.

ABOUT HJ SIMS: Founded in 1935 on Wall Street, HJ Sims is a privately held investment bank and wealth management firm with $2.2 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 $22 billion for projects throughout the US. The firm is headquartered in Fairfield, Connecticut, with investment banking, private client wealth management and trading nation-wide. Pershing LLC, a subsidiary of The Bank of New York Mellon Corporation, is custodian of all client assets. HJ Sims is not affiliated with Brethren Village. For more: Investments involve risk, including the possible fluctuation of principal. Member FINRA, SIPC. Follow HJ Sims on Facebook and LinkedIn.

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