In 2009, Sunset embarked on development of
The market study for phase three (completed in
During Autumn 2020, Sims re-analyzed financing options for Sunset’s apartment expansion and existing debt. Hefty termination costs associated with an existing long-term swap limited the number of viable refinancing options. Sims identified a new commercial banking partner that would finance the apartment project and replace one of the lenders.
In order to minimize Sunset’s long-term cost of capital and avoid large forward starting swap premiums, Sims worked with the lending partner to allow for the new money long-term bond proceeds to be drawn first such that the forward swap could take effect in just five months. By drawing the long-term proceeds first, Sunset has time to secure proceeds from strategic initiatives, which will be applied to project costs before any draws on the short-term bond proceeds. This allows Sunset to further minimize its funded interest costs during construction.
$13.40Mof Series 2021A Bonds, partially refunding Series 2014 debt and enabling Sunset to avoid any disruption or incurring a greater cost of capital.
- Up to
$9.90Mof Series 2021B Bonds, funding construction costs associated with the project and minimizing annual debt service burden.
- Up to
$18.59Mof Series 2021C Bonds, funding construction costs associated with the project and enabling Sunset to deliver and minimize the overall debt service.
The Series 2021 financing, coupled with management’s prudent strategic decisions, positions Sunset for operational success and growth.
“Pursuing debt financing for an expansion and bank replacement during COVID-19 was challenging, but Sims made it happen. With
ABOUT HJ SIMS: Founded in 1935, HJ Sims is a privately held investment bank and wealth management firm. Headquartered in
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SOURCE HJ Sims