• EXCEPTIONAL

    “BB&T's bankers didn't just earn our business; they earned our trust.”—Mike Sherneck, Chief Financial Officer, Southeast Georgia Health System

  • Kendal on Hudson continuing care retirement community, Sleepy Hollow, NY

    PARTNERS

    “We do not consider our recent transaction as ‘transactional’ banking but rather value the BB&T team as our partners for the long term”—Jennifer Anderson, CFO, Kendal on Hudson continuing care retirement community

  • Beacon Hill at Eastgate senior living project, Grand Rapids, Michigan

    ACHIEVEMENT

    “BB&T allowed us to achieve our stated goals of reducing interest expense and obtaining a more flexible covenant package.”—Rachel Olmsted, CFO, Beacon Hill at Eastgate, Grand Rapids, Michigan

  • Casey's Pond senior living project, Steamboat Springs, Colorado

    TEAMWORK

    “BB&T, and the team they brought together, were keys to bringing the project from plan to reality."—Karl Gills, board chair, Casey's Pond sponsor Colorado Senior Residences, Steamboat Springs, Colorado

Healthcare Group

We know that our innovative solutions are the result of not only our industry expertise, but also the depth of our resources. Our Healthcare Finance and Corporate Banking teams deliver low cost debt financing to hospitals and senior living providers for startups, expansions, new bed towers, replacement facilities, refinancings and repositionings, among others. With the many financing tools of BB&T Capital Markets at our fingertips, we have multiple options available to tailor a solution specific to each client’s needs. We understand how to navigate the toughest economic environments in order to generate favorable results, while providing the guidance and support you require. Our team is armed with the broadest array of financial tools in the sector allowing us to provide a variety of services to our clients, including:


Along with:

  • Soliciting and evaluating bond ratings and credit enhancement
  • Integrated debt planning and advisory services
  • Financing documentation preparation

 

 

Our healthcare team provided more than $16 billion in low cost debt solutions to nearly 200 healthcare providers in the past 10 years

  • Aldersgate United Methodist Retirement Community, Inc.

    On May 18, 2017, BB&T Capital Markets priced a $19.1 million fixed rate bond financing (Series 2017A Bonds) for Aldersgate United Methodist Retirement Community, Inc. The bond proceeds will be used to refinance an existing bank loan and fund the remaining construction costs for the renovation of a community center. Simultaneously with the Series 2017A Bonds, Aldersgate has also obtained approximately $35 million in bank financing to fund the construction of 62 new independent living units and routine capital expenditures. Both transactionsclosed on May 31, 2017.

    BB&T Capital Markets obtained the lowest 30-year fixed interest rate to date in 2017 for a non-rated Life Plan Community.

    Read More
  • Wesley Commons

    On October 19, 2016, BB&T Capital Markets closed a $27,110,000 Series 2016 Fixed Rate Bond Issue to retire Wesley Commons’ existing Series 2006 Fixed Rate Bonds.

    BB&T worked with Wesley Commons and Ascension Capital Enterprises on the refinancing of Wesley Commons Series 2006 Bonds. The team decided to extend the maturity of the bonds by five years to create additional debt capacity. As pricing approached in early October, BB&T revised the bond structure to eliminate serial bonds in favor of a term bond with a premium structure, thus increasing the savings realized by Wesley Commons. Despite market turmoil on the day of pricing that caused the major market index to move up seven basis points, BB&T was able to successfully price the transaction without having to adjust interest rates. Wesley Commons ultimately received an all-in-cost of 4.59 percent and will save approximately $440,000 on an annual basis from 2017-2036 as a result of the refinancing.

    Read More
  • LifeSpire of Virginia

    On October 12, 2016, BB&T Capital Markets closed an $85,505,000 Series 2016 Fixed Rate Bond issue for LifeSpire of Virginia (“LifeSpire”). The proceeds will be used to retire LifeSpire’s existing Series 2006A and Series 2006C Fixed Rate Tax-Exempt Bonds as well as a taxable line of credit.

    Read More
  • Crest View Senior Communities, Inc.

    On June 30, 2015, BB&T Capital Markets closed a total bond issue of $55,650,000 in tax-exempt and taxable bonds for Crest View Senior Communities (Crest View).  The bond proceeds will be used to finance the construction of a new campus and to create a new Obligated Group via a refinancing of existing debt.

    

    Read More
  • Baptist Homes Society

    On June 24, 2015, BB&T Capital Markets closed a $137,885,000 Series 2015 Fixed Rate Bond issue for Baptist Homes Society (BHS). The proceeds of the 2015 Bonds were used to refund the outstanding Series 2007 Variable Rate Demand Bonds (VRDBs).

    

    Read More
  • The Moorings, Incorporated

    On April 2, 2015, BB&T Capital Markets closed a $63,425,000 Series 2015A Fitch and S&P "A+" Rated Fixed Rate Bond issue, $23,550,000 Series 2015B Tax-Exempt Bank Loan, and $47,450,000 Series 2015C Tax-Exempt Bank Loan for The Moorings, Incorporated (The Moorings). The total proceeds will be used to retire The Moorings' existing Series 2000, 2005 and 2008 Variable Rate Demand Bonds and its Series 2010 Tax-Exempt Fixed Rate Bank Loan, and to fund a portion of the construction of the Moorings Park at Grey Oaks expansion project.

    Read More
  • UnitedHealth Group Incorporated

    On December 3, 2014, BB&T Capital Markets served as a co-manager for a $2 billion, three-tranche offering of notes by UnitedHealth Group. A $750 million tranche of 1.40% notes matures in 2017; a $500 million tranche of 2.30% notes matures in 2019; and a $750 million tranche of 2.875% notes matures in 2021. The transaction represents our seventh with this issuer over the past ten years. Proceeds from the transaction are being used for working capital requirements; the redemption or repurchase of outstanding securities; refinancing debt; financing acquisitions; and other general corporate purposes.

    Read More
  • The Glebe, Inc.

    On July 22, 2014, BB&T Capital Markets closed a $41,155,000 financing for The Glebe, a continuing care retirement community (CCRC) north of Roanoke, Va. The 2014 financing allows The Glebe to replace a costly and inflexible capital structure with one that vastly improves income and liquidity, favorably positioning the community for future expansion.

    Read More
  • Senior Living Choices of Virginia, Inc.

    On July 11, 2014, BB&T Capital Markets closed a $45,500,000 bank financing for Senior Living Choices of Virginia, Inc., d/b/a/ Brandermill Woods Retirement Community (Brandermill Woods), which owns and operates a rental continuing care retirement community, in Chesterfield County, Va. Proceeds of the financing will be used to add 93 new independent living units as well as 22 skilled nursing private rooms to the health care center. The completion of this financing marked the successful conclusion of Brandermill Woods’ multi-step capital formation strategy.

    Read More
  • Silver Creek St. Augustine

    On May 29, 2014, BB&T Capital Markets closed a nonrated $28,615,000 tax-exempt fixed rate financing and $1,000,000 taxable fixed rate financing for Zerga Development, LLC, and Zerga Management, LLC, a for-profit developer and manager of traditional multifamily housing and hospitality projects. The primary purpose of the financing was to provide funds for the construction of Silver Creek St. Augustine, an assisted living/memory care facility to be located in St. Augustine, Fla. BB&T Capital Markets, through its expertise with non-rated senior living credits and familiarity with healthcare and housing bonds, was able to utilize a form of housing bonds to provide the construction financing for Silver Creek St. Augustine. Through a combination of tax-exempt and taxable bonds, local grants and economic support, as well as defined deferral and subordination mechanics of the management and development fees, BB&T was successfully able to market and place the bond to nine institutional investors along with a strong retail distribution. BB&T Capital Markets was able to leverage its industry leading distribution capabilities and established relationships with institutional buyers to broaden Zerga’s geographic offering and continue their planned growth initiatives.

    Read More
  • Kendal on Hudson

    On May 7, 2014, BB&T Capital Markets closed an $18,000,000 Bank Financing for Kendal on Hudson (“Kendal on Hudson”), which operates a not for profit retirement community in the village of Sleepy Hollow, New York. Proceeds of the financing financed KoH’s Project Renew (as described below). The completion of this financing marked the successful conclusion of KoH’s multi-step capital formation strategy. After the successful closing of the Series 2013 refinancing, BB&T Capital Markets (“BB&T”) continued to work with KoH to formulate the financing plan for “Project Renew”. Project Renew is primarily a repositioning of KoH’s assisted living and skilled nursing health center. The project components will include the addition of 13 safe and secure memory support units (certified as Special Needs Assisted Living Residence or “SNALR”). Of the 13 units, 6 will be certified as Enhanced Assisted Living Residence (“EALR”) in order to allow aging in place. KoH will also add 10 assisted living beds which will all be certified as EALR. Project Renew will also renovate several areas on campus including the fitness/wellness center, resident care center, and outpatient therapy suite. BB&T presented KoH with several financing alternatives, which included both bond and bank financing for Project Renew. Based on the anticipated availability and attractiveness of bank financing, BB&T coordinated a bank solicitation process that included 17 regional and national commercial banks. The solicitation received strong interest from multiple banks in the market. BB&T assisted KoH in theevaluation process of the bank proposals as well as providing a fixed rate bond option. Ultimately, KoH opted to move forward with bank financing and to work with First Niagara Bank, whose proposal was the most attractive, based on “all-in” cost of financing, length of bank commitment, along with loan covenants and terms. KoH was able to secure a “natural” fixed rate of 3.34% with a 10-year put provision and final maturity (and amortization) of 25 years. Amidst the Project Renew financing process, KoH also faced its first annual Fitch rating surveillance review. BB&T worked with KoH to frame the positive impact of the $18 million financing and $3.5 million of equity contribution towards Project Renew on the projected financial ratios and emphasize Management’s continued marketing and operating initiatives. Consequently, Fitch affirmed the “BBB”rating (stable outlook), citing the organization’s solid historical occupancy, operating profitability, and liquidity and its relationship to Kendal Corporation, the parent organization. In addition, Fitch views KoH’s strong independent living occupancy and waitlist demand as a primary credit strength. Although Project Renew presents an elevated debt burden and construction risk, Fitch noted that the project will provide for a wider array of healthcare services. The successful completion of the Series 2014 Bank Loan was an important milestone for KoH, enabling KoH to solidify its long-term capital structure with a new committed banking partner. Kendal on Hudson is now better positioned to serve the aging community in Westchester County, NY.

    Read More
  • Wesleyan Senior Living

    Wesleyan Senior Living has a 117-year history of serving seniors in northeastern Ohio, including Cleveland and its western suburbs. WSL is the sole member of Wesleyan Senior Living Obligated Group, which includes Wesleyan Village and Wesleyan Meadows, Wesleyan Senior Living Foundation and Wesleyan Services Corporation. Collectively, WSL Obligated Group has approximately 223 independent living, 115 assisted living, and 154 skilled nursing units and serves more than 725 seniors throughout it operation, providing a range of senior-living and related services at its Wesleyan Village and Wesleyan Meadows campuses and in the broader community. Financing Process and Structure: BB&T has had a multiyear relationship with WSL, and has served as a resource to advise on a variety of initiatives including operating and financial performance improvement activities, strategic planning and board education, along with continued monitoring of WSL’s existing debt (and LOC ank relationship). With interest rate declines continuing through 2012-early 2013 and an upcoming LOC expiration on the Series 2004 VRDBs, BB&T worked with WSL to identify bank and bond refinancing alternatives for the Series 2004 Bonds as well as the outstanding construction and property acquisition loans. Bank financing was identified as the preferred alternative and BB&T assisted WSL with further exploration of bank financing options, focused on a targeted group of banks active in Ohio and providing senior living financing. Ultimately, BB&T worked with WSL to secure a commitment from Huntington Bank for the full refinancing request. Terms of the financing, incorporating a combination of tax-exempt and taxable debt, were attractive and included floating rate and synthetic fixed rate options, an 8-year put and 25-year amortization – WSL ultimately opted for a synthetic fixed rate through the put date and locked in a blended “all-in” cost of financing of 3.95 percent. BB&T also assisted WSL in coordinating the termination of an existing interest rate swap associated with the Series 2004 Bonds and entrance into new swaps with Huntington Bank to implement the synthetic fixed rate financing. Successful completion of the financing in June 2013 was an important achievement for WSL, enabling it to solidify its long-term capital structure (and financial position), with a new committed bank partner, at what proved to be historically low interest rates. It also validated the merits of the long-standing relationship between WSL and BB&T, which enabled WSL to move quickly to take advantage of favorable interest rates and successfully achieve its refinancing goal.

    Read More
  • Chandler Hall

    On April 19, 2013, BB&T Capital Markets closed a $21,075,000 Bank Financing for Chandler Hall Health Services, Inc. (Chandler Hall), a nonprofit Quaker-sponsored continuing care retirement community and health services organization in Newtown, Pa. Proceeds of the financing were used to refinance Chandler Hall’s outstanding fixed rate Series 1999 Bonds. The refinancing allowed Chandler Hall to significantly reduce its interest expense, generating expected net present value savings of approximately $3 million, or 12.81 percent of the refunded Series 1999 Bonds. Spurred by continuing declines in interest rates and a current optional call date on its Series 1999 Bonds, Chandler Hall engaged BB&T in May 2012 to pursue the refinancing of its outstanding Series 1999 Bonds. Following its engagement, BB&T identified and presented Chandler Hall with several refinancing alternatives, which included bond financing, bank financing along with a potential combination of the two options. Based on the anticipated availability and attractiveness of bank financing, BB&T coordinated a bank solicitation process that included 20 regional and national commercial banks. The solicitation elicited strong interest from multiple banks and ultimately two proposals meriting the most serious consideration. BB&T assisted Chandler Hall in the evaluation of these proposals along with a comparison to a fixed rate bond option. Ultimately, Chandler Hall opted to pursue the refinancing using bank debt and to work with Fulton Bank, whose proposal was the most attractive, based on “all-in” cost of financing, loan put date, along with loan covenants and terms, Chandler Hall secured a fixed rate of 3.40 percent with a 10-year put provision and a final maturity (and amortization) of 16 years (matching the existing maturity on the 1999 bonds), allowing Chandler Hall to realize significant annual debt service savings while assuming a comfortable level of interest rate and loan put risk. These savings, and their favorable impact on operating profitability, will further enhance Chandler Hall’s financial position and its ability to continue to deliver a broad continuum of services to a large group of constituents along with supporting future organizational growth.

    Read More

Our Area of Expetise

Acute Care

Including Hospitals, Clinics, Healthcare Provider Startups, Expansions, New Bed Towers, Replacement Facilities, Federally Qualified Health Centers

Senior Living

Continuing Care Retirement Communities, Independent Living Facilities, Assisted Living Facilities, Skilled Nursing Homes

 

Preparing Your Board for Sponsorship Transitions

Lynn DalyManaging DirectorHealthcare GroupPlay The Video

New Financing Opportunities in Senior Housing

Steve ComaManaging DirectorHealthcare GroupPlay The Video

Direct Tax-Exempt Bank Placements: The History

John FranklinManaging DirectorHealthcare GroupPlay The Video

Direct Tax-Exempt Bank Placements: The Structure

John FranklinManaging DirectorHealthcare GroupPlay The Video

Direct Tax-Exempt Bank Placements: Adv/Disadv

John FranklinManaging DirectorHealthcare GroupPlay The Video