Havenwood-Heritage Heights


Sims’ Experienced Bank Market Knowledge
Maximizes Value to Life Plan Community

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“Havenwood-Heritage Heights and Herbert J Sims have had an important and special strategic relationship for close to 20 years now. During that time we have been successful in the completion of several major financial transactions allowing our organization to be true to its mission by doing much needed infrastructure work. Today, hundreds and hundreds of lives have been positively impacted by this challenging yet highly rewarding financial work that is often never seen by anyone as it happens quietly and seamlessly behind the scenes.”

– Michael Palmieri, President and CEO Havenwood-Heritage Heights

Partnered Right
  • Havenwood-Heritage Heights (HHH) owns and operates two senior living communities in Concord, NH with 372 independent living apartments and cottages, 56 assisted living units and 95 skilled nursing beds
  • Will celebrate its 50th anniversary in 2017
  • HJ Sims has been in important partner to HHH with bond underwriting and financial advisory services as the communities have evolved through expansion, renovation and refinancings
Structured Right
  • Management had developed a strong working relationship with a regional financial institution over the past several years
  • Desired a new financing which would refund the last remaining fixed rate municipal bonds with tax exempt bonds directly purchased by the bank
  • Objective to capture lower interest rates and create a unified covenant and reporting structure across all outstanding debt
  • “Invest” debt service savings by increasing the principal amount of new debt without increasing the annual debt service payment, with additional proceeds used for capital improvements
Executed Right
  • New $11 million bond issue with maturity date consistent with existing bonds purchased previously by bank
  • Lowered credit spread on existing debt to reflect financial performance
  • Streamlined all debt with consistent covenants, reporting requirements; eliminated several restrictive covenants
  • Entered into swap prior to closing to capture favorable market conditions
Financed Right
  • All-in fixed interest rate of 2.37%
  • $2.6 million in additional proceeds for capital improvements
  • No increase in annual debt service
Partnered Right

Havenwood-Heritage Heights (HHH) has been serving New Hampshire seniors at its two campuses for nearly 50 years. It is the largest of only three Life Plan communities in the state to be accredited by CARF-CCAC. HJ Sims has been working with the organization for 20 years on various engagements as the communities have evolved through expansion and renovation.

Structured Right

HHH developed a close working relationship with a regional bank that led to a prior refunding of existing debt with lower cost bonds purchased directly by the bank. Management received a term sheet for the refunding of the remaining public debt with additional bonds purchased directly by the bank and engaged HJ Sims to represent them as financial advisor.

Working with management Sims took inventory of the interest rates, covenants and reporting requirements on the existing debt and the proposed new debt, comparing it to what Sims has seen from other banks in the numerous other engagements with which it has been involved. Sims worked closely to identify areas for improvement that provided flexibility for future growth and eased the administrative burden.

Sims also presented management with several scenarios that would enable them to “reinvest” the debt service savings into additional bond proceeds to complete capital projects without tapping into balance sheet reserves. Furthermore, Sims requested a lower interest rate on the existing debt with the bank to better reflect the improved financial performance of the organization.

Executed Right

HHH issued $11 million in tax exempt bonds through the New Hampshire Health and Education Facilities Authority. The credit spread on the existing debt held by the bank was reduced, and uniform documents were created which provided management with a consistent set of covenants and flexibility. In order to capture favorable market conditions, HHH entered into an interest rate swap with the bank shortly before closing.

Financed Right®

The fixed interest rate on the new debt is 2.37%. The bond issue provided $2.6 million in additional proceeds for capital improvements, and there was no increase in HHH’s annual debt service payment.

For more information on how Havenwood-Heritage Heights was Financed Right® by HJ Sims, please contact Andrew Nesi or Mackenzie Welch.

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