Peabody Retirement Community $28 Million Financing

November 29, 2016

Cain Brothers served as the Sole Managing Underwriter of approximately $28 million fixed rate Series 2016 bonds on behalf of Peabody Retirement Community (“Peabody” or the “Community”).  Peabody is a not-for-profit continuing care retirement community located in North Manchester, Indiana.  The Community was originally founded in 1931 and consists today of 57 independent living units, 118 assisted living units, and a 192 bed health care center, of which 48 beds are dedicated to memory care.

Proceeds from the Series 2016 bonds were used to refund Peabody’s $43 million Series 2013 bonds, effectively reducing the Community’s outstanding debt by more than $15 million.  This significant deleveraging, which helps position the Community for long-term financial sustainability, was made possible by favorable early redemption provisions negotiated with creditors during Peabody’s bankruptcy in 2013 and the Community’s improved financial performance since that time.

The Series 2016 bonds were structured in three tranches as follows:

• $22.10 million Series 2016A Tax-Exempt Senior Bonds

• $5.41 million Series 2016B Tax-Exempt Subordinate Bonds

• $185,000 Series 2016C Taxable Senior Bonds

Hamlin Capital Management is initially serving as the bondholder representative of the Series 2016A&C senior bonds and Advantage Advisers is initially serving as the bondholder representative of the Series 2016B subordinate bonds.

For more information, please contact:

Bart Plank

Managing Director
Head of Capital Markets
(212) 981-6915
bplank@cainbrothers.com

Bill Pomeranz

Managing Director
(415) 962-2954
bpomeranz@cainbrothers.com

Christopher J. Everett

Senior Vice President
(212) 981-6950
ceverett@cainbrothers.com