From Seed Money to Investment Grade Rating, HJ Sims Finances Cadbury at Lewes

FAIRFIELD, Conn., Jan. 10, 2017 /PRNewswire/ -- HJ Sims, a privately held investment bank and broker-dealer founded in 1935 on Wall Street and celebrating more than 80 years of service, is pleased to announce the successful completion of a $17,620,000 bond offering for Cadbury-Lewes this past October. Cadbury at Lewes, Inc. is a Life Plan Community located in Lewes, Delaware, less than two miles from the Atlantic Ocean and the only full-service retirement community on the Delaware beach. The community opened in 2007, and the skilled nursing center enjoys a 5-star rating. Cadbury at Lewes is a member of Cadbury Senior Lifestyles, a not-for-profit Quaker guided organization. Proceeds of the new bond issue were used to refinance existing debt.

HJ Sims has had the privilege of working with Cadbury since its inception, providing seed capital for its development and underwriting the initial bond issue in 2006. Being a conservative organization, the Board of Directors wanted to capitalize on lower interest rates to generate debt service savings but did not want to extend the maturity of the existing bonds. As such, any debt service savings would need to be accomplished by obtaining the lowest possible interest rates on the new bonds. HJ Sims worked with Cadbury management to effectively communicate the strengths of the organization in order to achieve a BBB rating with a Stable outlook from Fitch Ratings, an impressive accomplishment within 10 years of the community's opening. This investment grade rating expanded the universe of potential investors significantly to position the new bond offering for optimal results.

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 [email protected] | 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.

SOURCE HJ Sims

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