Hamlin Capital Advisors, LLC (“HCA”) is pleased to announce the closing of a $30.3 million acquisition bond financing of a bankrupt CCRC, in partnership with Bethel Methodist Home (“Bethel”), headquartered in Westchester, NY. The financing allowed Bethel to preserve the mission of another not-for-profit provider that had been forced to file for bankruptcy protection, and continue to serve their residents.
The Situation
Bethel has over a 100-year history serving the seniors in the Westchester community, and today provides a broad range of services and multiple levels of care. Through its partnership with Hamlin Capital Advisors, Bethel was able to expand its mission by saving the mission of another not-for-profit. The acquisition required rapid access to highly customized two-stage financing, which HCA was able to deliver.
The Hamlin Solution
HCA implemented a two-part financing, whereby Bethel utilized a short-term $16.3 million taxable bridge financing to initially acquire the CCRC by the court-ordered deadline, which closed in October 2016. This was then followed by the issuance of long-term bonds to provide Bethel with capital to refinance the bridge facility, as well as $6 million of new monies used to revitalize and re-invest in the project. The new money bonds will be drawn down as needed over a multi-year period, to eliminate unnecessary interest costs to the project.
The financing of Bethel Methodist marks another example, of HCA’s unique access to acquisition financing in the not-for-profit senior living industry, that will allow another Mission to be saved for the benefit of the local residents and the industry as a whole.
