Presbyterian Retirement Communities

Presbyterian Retirement Communities, Inc. (“PRC”) and its affiliates (collectively, the “Obligated Group”) constitute the largest group of continuing care communities (“CCRCs”) in the State of Florida with a total of 3,593 units, including 2,297 residential units, 515 assisted living units and 781 skilled nursing units. According to a 2019 LeadingAge 200 Report, the Obligated Group is the twelfth (12th) largest nonprofit operator of senior living units in the United States.

PRC is a Florida not-for-profit corporation organized for the purpose of creating and preserving excellent residential and health care communities promoting wellness and encouraging active and healthy lifestyles for older adults.

$62,000,000
Series 2020A

$45,360,000
Taxable Series 2020B

St. John County Industrial Development Authority
Revenue Bonds
(Presbyterian Retirement Communities Obligated Group Project)

Wye River Group Served as Independent Financial Advisor to Presbyterian Retirement Communities for these transactions.

Project Overview

The purposes of the financing are to: (i) refinance PRC’s existing Series 2017A and Taxable Series 2017B Bonds (which had been obligations of Westminster Pines in St. Augustine, FL, after it was acquired by PRC in 2017) and its existing Series 2010B Bonds, (ii) fund constructing, improving and equipping certain facilities) and (iii) pay the costs of issuance of the Bonds.  The refinancing of the Series 2017A and 2017B Bonds allowed Westminster Pines to become a Member of the PRC Obligated Group, reduce its cost of borrowing and eliminate put risk related to the Series 2017A & B Bonds.

Financing Overview

PRC is one of the strongest CCRC organizations financially in the country.  It’s “A-“ long-term debt rating from Fitch Ratings was confirmed in this financing process even in the face of the credit headwinds for senior living facilities caused by the COVID-19 pandemic crisis.

The sale of the Bonds occurred on September 10, 2020.  The Wye River team worked very closely with the entire finance team to optimize the amortization of the respective tax-exempt and taxable series, which kept the overall cost of debt to the lowest level possible.  The tax-exempt Series 2020A Bonds are 35-year bonds that mature in the years 2050 through 2055.  The taxable Series 2020B Bonds have term maturities in 2025, 2028, and 2050.  The blended all-in cost of borrowing for the Series 2020 Bonds was 3.86%.

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