Inland Christian Home $18,425,000 Financing (Series 2020) – First Senior Living Tax-Exempt Financing Since Pandemic Begins
May 1, 2020
This is the first tax-exempt senior living financing completed since the COVID-19 pandemic and the dislocation of the tax-exempt bond market. The transaction was well received by investors and over-subscribed through all tranches, allowing us to reduce the yield during the order period. Key to the success of the transaction was Cain Brothers’ ability to organize and lead the working group and complete the printing, pricing and closing of the transaction in just 13 days.
Cain Brothers served as the Sole Manager in the public issuance of $18,425,000 of tax-exempt fixed rate revenue bonds on behalf of Inland Christian Home (“ICH”). ICH is a not-for-profit corporation that provides residential living, assisted living, memory care and skilled nursing services for seniors on its 11-acre campus in the City of Ontario, California, which is in the eastern Los Angeles metropolitan area often referred to as the “Inland Empire”. ICH opened its doors in 1978 and has been a reliable provider of quality, affordable, individualized care to seniors in a Christian environment.
The proceeds of the Series 2020 Bonds (the “Bonds”) were used to refinance two outstanding bank loans in the amount of $10.3 million, private notes and fund capital expenditure reimbursement and new capital projects around ICH’s campus. The Bonds have been assigned a rating of “AA-” by S&P and are insured by Cal-Mortgage. Amid a disrupted municipal market, ICH was still able to take advantage of the low interest rate environment and achieved a 30-year yield of 3.08%. The financing is instrumental to ICH’s long range campus development and financial