Promissory Notes Series 2022 A, B & C
Created in 1989, Care Initiatives, a non-profit corporation, owns and operates 43 skilled nursing care locations, eight assisted living locations, seven hospice locations and three independent living facilities throughout Iowa. Care serves the special needs of over 2,900 elderly adults and is the largest single operator of nursing homes in Iowa. All of Care’s facilities provide 24-hour professional nursing care in addition to regular medical, nursing, social and rehabilitative services.
Care Initiatives desired to secure near-term cash flow savings by refunding a portion of its outstanding debt and to secure ready access to capital for strategic initiatives. Wye River conducted an RFP for bank financing on behalf of Care Initiatives to address Care’s financing needs.
The Series 2022 A & C Notes are fixed rate bank-purchased taxable term notes. The Notes were each structured with a multi-year interest only period and amortization schedule based on a 20-year term, with balloon a payment due at the end of a 10-year rate commitment term.
Care Initiatives also secured a line of credit for $10 million (the Series 2022 B Note) in connection with the financing.
The transactions closed on schedule on June 29.