Ohio CCRC takes $23.3M in bonds

Friendship Village of Dublin (FVD) in suburban Columbus, Ohio, will use a $23.3 million fixed-rate, Fitch rated “A–” (stable), Series 2014 bond issue to continue to pursue various projects included in its master plan over the next five years, according to specialty investment bank Ziegler, which closed on the issue.

FVD has a 366-unit continuing care retirement community totaling 450,000 square feet on a 23-acre campus. It includes 244 independent living apartments, 16 independent living villas, 46 assisted living studio apartments (13 designed for memory care) and a 60-bed skilled nursing facility (SNF). Proceeds of the Series 2014 bonds will be used to:

• refund $17.46 million in outstanding Series 2004B variable rated demand bonds,
• reimburse the FVD for $4.74 million in construction costs related to 12 Villas built in the past two years,
• fund future capital expenditures, including four Villas, at a total cost of $2.29 million, and
• pay a portion of issuance costs in connection with the Series 2014 bonds.

FVD has earned national accreditation from the Commission on Accreditation of Rehabilitation Facilities–Continuing Care Accreditation Commission, according to Ziegler, and its SNF earned a five-star rating on the federal government’s Nursing Home Compare website. It currently is managed by Life Care Services.

Ziegler noted that this is the first time the company has underwritten fixed-rate senior living bonds without a debt service reserve fund funded at closing. “Ziegler has had a long partnership with FVD that we are very proud of,” said Tom Meyers, managing director of the company’s senior living practice.

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