Expansion plans for the Mary Wade Home in New Haven are moving forward thanks to more than $45 million in financing from HJ Sims, a Fairfield-based investment bank and wealth management firm.
HJ Sims closed on $45.8 million financing in September for the Mary Wade Home, which is expanding by adding an assisted living and memory care building on parcels of nearby land acquired over several years. When completed in 2021, the new building will allow residents with assisted living needs to remain in the community as their needs change over time.
Founded in 1866 as a healthcare organization for homeless women and children, the Mary Wade Home in 1966 became a full-service facility for seniors. Today it offers multiple levels of care, including a skilled nursing center, residential care home services, adult day medical health center, physical rehabilitation and transportation services. HJ Sims has worked with the Mary Wade Home since 1988.
The total financing needed, including construction period interest, reserves, repayment of prior debt and construction costs, is $45.8 million. HJ Sims created a taxable and tax-exempt series of bonds to finance the development. The taxable series was needed to cover prior land acquisition costs not eligible for tax-exempt financing.
Sims worked to obtain a BB (Stable) rating from Fitch Ratings. Although the Mary Wade Home did not fit Fitch’s typical profile as a skilled nursing and residential care home without a housing component, HJ Sims said in a statement, the organization exhibited the financial metrics of an investment-grade borrower to achieve the rating. Reliance on government-reimbursement systems like Medicare, Medicaid and Connecticut’s Old Age Assistance program created higher risk factors.
Sims assisted in obtaining approval from the Connecticut Health and Educational Facilities Authority (CHEFA) to issue the bonds. CHEFA issues most Connecticut senior living bonds, which typically carry an investment grade rating. CHEFA’s support was instrumental in completing the financing.
The new $45.8 million bond issue closed on Sept, 26 with an interest rate of 3.83 percent for the longest bond maturity of 2054. With HJ Sims’ leadership in collaboration with management, the Mary Wade Home moved forward with its goal of providing enhanced services to the community.
“This recent financing was the third bond issue Sims has underwritten for Mary Wade since 1988 and was both the largest and by far the most difficult project,” David Hunter, CEO of the Mary Wade Home, said in a statement. “The development of a modern assisted living and memory care building is an important advancement for not only our organization, but also for the seniors we serve. Sims played a vital role in getting this project off the ground. Sims managed all of the team members and financing process with exceptional professionalism and expertise.”
