$72.9 Million Direct Bank Purchase Financing for The Carmelite System Obligated Group

19-Feb-2015

Germantown, NY - Cain Brothers served as sole investment banking advisor for the issuance of $72.9 million Series 2014 Direct Bank Purchase Bonds and Term Loan. 

The Carmelite System, a Catholic nonprofit health system sponsored by the Carmelite Sisters for the Aged and Infirm, consists of fourteen senior care facilities that provide services to the aged and infirm. The member facilities are located in Florida, Illinois, Iowa, Kentucky, Massachusetts, New York, Ohio and Dublin, Ireland where senior care services are provided, including skilled nursing, assisted living, independent living and post-acute care. 

The 2014 Direct Purchase Financing consists of $63.6 million of tax-exempt bonds and a $9.3 million taxable term loan. Proceeds from the financing were used to fund the acquisition of The Villas at Saint Therese, Independent and Assisted Living Facilities previously owned by the Diocese of Columbus, OH, as well as to refinance three series of outstanding debt in order to create an Obligated Group. Cain Brothers also assisted the Obligated Group in entering into a $24.3 million fixed pay swap, which along with the existing swaps, hedges a majority of the Series 2014 Bonds and Term Loan. 

Additionally, Cain Brothers acted as the strategic advisor to the Carmelite System for both the Villas at Saint Therese acquisition and the formation of the Obligated Group. Along with the existing skilled nursing facility, The Villas at Saint Therese acquisition creates a complete continuum of care on the existing Columbus, OH campus. The Obligated Group, comprised of eight senior housing campuses across the country, allows the Carmelite Sisters to achieve the long-term strategic goals of improved overall creditworthiness, increased debt capacity and increased ability to secure more favorable financing terms when compared to member facilities on a stand-alone basis. The formation of the Obligated Group will also enable the Carmelite System to better centralize financial and operational management of the facilities included in the System.


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