The Carmelite System, Inc. Obligated Group $79,499,000 Aggregate Bond Underwriting and Bank Loan Financing

November 29, 2020

Cain Brothers, a division of KeyBanc Capital Markets, served as Sole Underwriter, Loan Arranger and Structuring Agent for The Carmelite System, Inc. Obligated Group. CSOG is a Catholic, not-for-profit senior living provider sponsored by the Carmelite Sisters for the Aged and Infirm and consists of senior care facilities in Florida, Illinois, Iowa, Massachusetts and Ohio that collectively operate 1,009 SNF beds, 202 AL units and 126 IL units.

The multi-state, multi-tranche financing consisted of: $53,200,000 tax-exempt public fixed rate bonds, $14,186,278 tax-exempt bank direct purchase bonds, $7,114,398 taxable bank term loan, $4,000,000 line of credit and $1,000,000 letter of credit (collectively the “Series 2020 Financing”). The Series 2020 Financing represents a landmark transaction for Key which successfully combined the healthcare underwriting and structuring expertise of Cain Brothers with the balance sheet and commercial banking services of KeyBank N.A. to provide a comprehensive financing solution for CSOG.

The proceeds of the Series 2020 Financing were used to refinance existing Bank Loans, terminate associated swaps and fund improvement projects at 3 communities. The plan of finance was designed to capture the currently low fixed interest rate levels while reducing bank interest rate and renewal risks.

As part of the financing, Cain Brothers guided CSOG through its first credit rating application for which it received an “A- Stable”, placing CSOG in the top 22% of Fitch’s rated Life Care bond issues, a notable accomplishment given Fitch’s senior living portfolio is predominantly CCRCs. Cain Brothers also helped secure a Social Bond designation (issued by Kestrel Verifiers) related to the public bonds, the first such designation for a senior living bond issue. The Social Bond designation aligns with CSOG’s mission and improved bond marketability.

The Series 2020 Financing marked the first ever public fixed rate bond issue for CSOG. The aggregate financing team of Cain Brothers and KeyBank delivered a successful financing that will be instrumental to CSOG’s long-term operating goals and financial stability.

For more information, please contact:

Matthew Goldreich

Managing Director
(212) 981-6946

James Conahan

Vice President
(212) 981-6893