Roland Park Place

Maryland Health and Higher Education Facilities Authority
Series 2019 A&B Bonds
(Roland Park Place Issue)

Wye River Group Served as Roland Park Place’s Independent Financial Advisor for this Transaction.

Project Overview

Roland Park Place (RPP) has initiated a two phase repositioning strategy to serve more effectively its existing and prospective new residents. Phase 1, which began in 2017, entails renovations and improvements to RPP’s existing mid-rise tower to optimize the unit mix and improve the continuum of care, including the addition of an assisted living memory support specialty care area. Construction of Phase 1 commenced in January, 2017 and is expected to be completed in September, 2019. The total Phase 1 cost is approximately $30 million.  Phase 2 involves the construction of a new tower containing 58 Independent Living units. Construction of that phase is underway and expected to be completed by June, 2021. The total cost of Phase 2 is estimated to be approximately $60 million.

Financing Overview

Proceeds of RPP’s 2019 financing will be used to fund Phase 2 of its repositioning strategy.  After the successful completion of its Phase 1 financing [if possible, insert hyperlink to 2017 summary], and with the development of Phase 2 becoming a certainty, RPP reengaged Wye River to assist with the planning and implementation of a financing for Phase 2.  Wye River conducted a competitive solicitation of prospective lenders for (a) $20 million of fixed rate long-term financing to be amortized over 30 years (2019A) and (b) $40 million of variable rate drawdown financing to be repaid within 7 years with the entrance fees from the new Phase 2 independent living units (2019B).  RPP received several competitive proposals and ultimately selected a lender that provided a very favorable 15-year conventional fixed rate commitment for the 2019A Bond and 7-year credit commitment for the 2019B Bond, and generally agreed to the security and covenants applicable to RPP’s existing debt.  The financing successfully closed in July, 2019.