After several years of historically low interest rates, market conditions began to change in October 2016 when the bond issue was brought to market. Despite the headwinds, HJ Sims sold $17.6 million in bonds to both institutional and individual investors at interest rates closely in line with management's initial expectations. In addition, HJ Sims structured the bonds with a first call date of seven years as compared to the industry norm of 10 years. HJ Sims successfully priced the bonds generating annual debt service savings of approximately $200,000 for a net present value savings of $2.4 million, equal to over 12% of the refinanced bonds.
"As has always been our experience with the firm, HJ Sims provided the most thorough, comprehensive guidance for refinancing our bonds. Achieving an investment grade rating within 10 years of opening our community enabled us to obtain maximum debt service savings at the most efficient cost and effective interest rates. We remain loyal clients!" said Arnold Weiner, Chief Financial Officer, Cadbury Senior Services.
"HJ Sims played an important role in making the concept of Cadbury at Lewes a reality in 2006 and is pleased to have provided a Financed Right® solution that creates a strong financial foundation for many years to come," explains Andrew Nesi, Executive Vice President, HJ Sims.
For more about HJ Sims and how we can offer you Financed Right® solutions, please contact Andrew Nesi at firstname.lastname@example.org | 203-418-9057.
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 $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 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. HJ Sims is not affiliated with Cadbury-Lewes. For more information, please visit: www.hjsims.com/ourstory. Investments involve risk, including the possible fluctuation of principal. Member FINRA, SIPC. Follow HJ Sims on Facebook, Twitter and LinkedIn.
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SOURCE HJ Sims