Covenant Retirement Communities Achieves $59.1M in Financing

By Barbra Murray, Contributing Editor

Ziegler has facilitated a tax-exempt bank direct purchase on behalf of Covenant Retirement Communities. The direct purchase, completed by JP Morgan Chase, came in the form of two series of bonds totaling approximately $59.1 million.

The bonds included approximately $15.8 million of Series A product and $43.3 million of Series B. The majority of the proceeds were utilized to refund outstanding Series 1999 , Series 2004 and Series 2006 bonds. Additionally, a sum of roughly $6 million was reserved to finance capital improvements for several CRC facilities in Colorado, Illinois and Michigan. The seniors housing company has 15 continuing-care retirement community, independent living and assisted living locations in eight states from coast to coast.

The closing of the Series 2011 bonds marks a milestone for the Illinois Finance Authority, as the bonds constitute the agency’s first multi-state issuance after becoming a multi-state conduit issuer in July 2010.  “Gov. Pat Quinn and the Illinois General Assembly recognized that multi-state conduit issuance authority is an important tool to both retain and create jobs in Illinois,” Chris Meister, IFA executive director, noted in a prepared statement.