HJ Sims Successfully Closes Financing for The Mary Wade Home
FAIRFIELD, Conn., Nov. 12, 2019 /PRNewswire/ -- HJ Sims (Sims), a privately held investment bank and wealth management firm founded in 1935, is pleased to announce the closing of a $45.8 million financing in September for The Mary Wade Home (Mary Wade), a healthcare organization founded in 1866 for homeless women and children. By 1966, Mary Wade evolved into a full-service facility for all seniors and today offers multiple levels of care in New Haven, CT, including a skilled nursing center, residential care home services, adult day medical health center, physical rehabilitation and transportation services. Sims has worked with Mary Wade since 1988 and was privileged to act as its investment bank for this financing.
Mary Wade is expanding by adding an assisted living and memory care building on parcels of nearby land acquired over several years. This new building, when completed in 2021, will complete a continuum of care by enabling residents with assisted living needs to remain in the community as their needs change over time.
The total financing need, inclusive of construction period interest, reserves, repayment of prior debt and construction costs, is $45.8 million. Sims created a taxable and tax-exempt series of bonds to finance the development. The taxable series was needed to cover prior land acquisition costs not eligible for tax-exempt financing.
Sims worked to obtain a BB (Stable) rating from Fitch Ratings. Although Mary Wade did not fit Fitch's typical profile as a skilled nursing and residential care home without a housing component, the organization exhibited the financial metrics of an investment-grade borrower to achieve the rating. Reliance on government reimbursement systems like Medicare, Medicaid and CT's Old Age Assistance program created higher risk factors.
Sims assisted in obtaining approval from the CT Health and Educational Facilities Authority (CHEFA) to issue the bonds. CHEFA issues most CT senior living bonds, which typically carry an investment grade rating. CHEFA's support was instrumental in completing the financing.
The new $45.8 million bond issue closed on September 26, 2019 with an interest rate of 3.83% for the longest bond maturity of 2054. With Sims' leadership in collaboration with management, Mary Wade completed an important step in achieving its goal of providing enhanced services to a community it has served for 150+ years.
"This recent financing was the third bond issue Sims has underwritten for Mary Wade since 1988 and was both the largest and by far the most difficult project. The development of a modern assisted living and memory care building is an important advancement for not only our organization, but also for the seniors we serve. Sims played a vital role in getting this project off the ground. Sims managed all of the team members and financing process with exceptional professionalism and expertise," said David Hunter, CEO, Mary Wade.
Please contact Andrew Nesi: 203-418-9057 | [email protected].
ABOUT HJ SIMS: Founded in 1935 on Wall Street, HJ Sims is a privately held investment bank and wealth management firm. HJ Sims is known as one of the country's oldest underwriters of tax-exempt and taxable bonds, having raised $28+ billion for projects throughout the US. The firm is headquartered in Fairfield, CT, with nationwide investment banking, private wealth management and trading locations. Visit www.hjsims.com/ourstory. Investments involve risk, including the possible fluctuation of principal. Past performance is no guarantee of future results. HJ Sims is not affiliated with The Mary Wade Home. Member FINRA, SIPC. Follow HJ Sims: Facebook, LinkedIn, Instagram and Twitter.
CONTACT: Tara Perkins, AVP Marketing Communications | 203-418-9049 | [email protected]
SOURCE HJ Sims
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