Springpoint Senior Living Lands $115M Refi

The Series 2021 bonds refund the outstanding debt for the company's newly assembled obligated group.
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Senior housing owner and operator Springpoint Senior Living has received $114.8 million in Series 2021 bonds for the refinancing of outstanding debt for its newly formed obligated group. Ziegler served as underwriter on the transaction, while Marathon Capital Strategies LLC acted as municipal advisor for the borrower.

The financing included fixed-rate, tax-exempt bonds. The loan refunds the outstanding debt of the obligated group members, while also reimbursing them for roughly $25 million in recent capital improvements. Concurrent with the bond issuance, Springpoint also received $85,000,000 of taxable bank financings from two regional banks.

The new obligated group included, besides Springpoint, six of its New Jersey life plan communities. For the previous 2015 refinancing, the obligated group contained Springpoint, three of its New Jersey life plan communities, as well as the Springpoint Foundation.

Originally founded in 1916 as the Presbyterian Home of the Synod of New Jersey, the company changed its name to Springpoint Senior Living in 2010. At the time of the deal, the firm’s operating portfolio included eight senior properties in New Jersey and Delaware, along with 19 affordable communities.

As the pandemic continues to reshape the real estate sector, senior housing is struggling to bounce back from last year’s record low occupancy levels. Last June, Ziegler secured $45.2 million in Series 2020 bonds for The Village at Germantown, an independent living, assisted living and memory care facility outside of Memphis, Tenn. Roughly the same time, Greystone closed a $43.9 million HUD-insured loan for three skilled nursing facilities located in upstate New York.