Virginia to Issue $166.7 Million in Bonds for Expansions at Retirement Communities

By Zaeem Shoaib

The Virginia Small Business Financing Authority is selling $166.7 million of bonds for the planned expansion at two retirement communities.

The authority will issues $143.7 million of Residential Care Facilities Revenue and Refunding Bonds Series 2024A, $9.5 million of Entrance Fee Principal Redemption Bonds Series 2024B-1, and $13.5 million of Entrance Fee Principal Redemption Bonds Series 2024B-2.

Interest on the tax-exempt bonds is payable on each June 1 and Dec. 1. Interest rates and yields on the debt have yet to be determined. The bonds are expected to be delivered on Nov. 7, according to documents posted on MuniOS on Friday.

The proceeds from the issuance will be used by a group consisting of Virginia Baptist Homes, Culpeper Baptist Retirement Community, Lakewood Manor Baptist Retirement Community, Newport News Baptist Retirement Community, The Glebe and Lynchburg Baptist Retirement Community to meet its operating requirements, working capital needs and other financial requirements associated with expansion plans at two existing campuses. Virginia Baptist Homes, doing business as LifeSpire, is the corporate parent of the other members of the group.

The group is planning to develop, own, and operate expansion units and renovations at Lynchburg Baptist Retirement Community, doing business as The Summit, and The Glebe.

A portion of the proceeds will be used to finance the construction of about 22 additional independent living units at The Glebe and 40 additional independent living units and 20 assisted living memory care units at The Summit.

Virginia Baptist Homes and its subsidiaries had total revenue, gains and other support of $122.5 million for the year ended Dec. 31, 2023. Total operating expenses for the year were $121.2 million.

Fitch Ratings has assigned the bonds a rating of BBB.

Herbert J. Sims & Co. and Davenport & Co. are acting as lead managers on the issuance.

Write to Zaeem Shoaib at zaeem.shoaib@wsj.com

(END) Dow Jones Newswires

October 07, 2024 11:28 ET (15:28 GMT)

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