Greencroft Communities Series 2021A and 2023

29 Nov

Case studies

Greencroft Communities Series 2021A and 2023

Pricing Date: November 10, 2021

Current Settlement Date: November 30, 2021

Expected Forward Settlement Date: August 17, 2023

$33,000,000 Series 2021A Tax-Exempt Fixed Rate Bonds

$34,000,000 Series 2023 Tax-Exempt Forward Delivery Bonds


Greencroft Retirement Communities (“Greencroft”) sought to take advantage of historically low interest rates and reduce interest rate risk by forward refunding its Series 2013A bonds (callable November 2023) and improve its risk-adjusted cost of capital by refinancing one series of outstanding bank debt. Greencroft also took advantage of economies to scale to fund $9mm new money projects


  1. Achieve an investment grade rating based on improving financial performance, despite pressures from the pandemic
  2. Enhance flexibility through a modernized MTI with liberal covenants for a ‘BBB-’ rated senior living credit
  3. Achieve cash flow savings by locking in current rates to refund bonds callable in 2023, despite forward premium
  4. The tax-exempt market leading up to November moved noticeably weaker with waning investor demand and increasing credit spreads


  1. Rating agency strategy: Ponder helped Greencroft successfully communicate its improved credit story and benefits of the financing to Fitch, including analyzing three credit scenarios. Ultimately, Greencroft was upgraded to investment grade ‘BBB-’ rating with a stable outlook
  2. Assisted Greencroft in crafting amended and restated MTI: Ponder worked with Greencroft, bond counsel, and the underwriter to modernize Greencroft’s existing MTI provisions, including elimination of required debt service reserve fund and elimination of Loan to Value Ratio covenant and the LTV support fund
  3. Significant savings results: Through the 2021 financing, Greencroft produced estimated NPV savings of $12.6 million (33% of refunded bonds) on the forward refunding and $1.6 million (6% of refunded bonds) on the current refunding
  4. Pricing Results: At pricing, Greencroft secured a cost of capital (all-in TIC) of 3.32% on Series 2021A and financed the longest senior living forward bond issue to date known to Ponder (21mos fwd) at a cost of 3.75% using 4% coupons to lower the yield. Given strong investor demand, Greencroft was able to tighten credit spreads by up to 6bps on pricing

About Greencroft: ‘BBB-’ (Fitch)

Greencroft consists of seven continuing care retirement communities in Indiana and Ohio with independent living unites, skilled nursing beds, and assisted living units. The obligated group consists of Greencroft Goshen, Hamilton Grove, and Southfield Village. In the 2021 LeadingAge Ziegler 200 publication, Greencroft ranked #36 among the largest NFP multi-site systems in the United States.

Pricing Results Series 2021A & 2023:

Greencroft Communities Series 2021A and 2023 Pricing Results

Comparable Bond Sales:

Greencroft Communities Series 2021A and 2023 Comparable Bond Sales