SOURCE: Ziegler


November 11, 2009 15:12 ET

Ziegler Announces Successful Closing of Veterans Development, LLC Transaction

CHICAGO, IL--(Marketwire - November 11, 2009) - As part of the Capital Asset Realignment for Enhanced Services (CARES), a blueprint for modernization of our U.S. Department of Veterans Affairs, Ziegler (PINKSHEETS: ZGCO) brought to market a fixed transaction of $115,000,000, a first of its kind that will allow for the consolidation of two Cleveland area VA campuses. The taxable bonds were issued to fund a 126,000 square foot office building and a 2,080 space parking facility for the U.S. Department of Veterans Affairs Louis Stokes Cleveland VA Medical Center (the Cleveland VA Medical Center).

During an extremely volatile market, Ziegler completed a sizeable real estate backed transaction. Ziegler worked closely with all constituents of the transaction to mitigate bondholder and bond insurer concerns on the lease structure while maintaining the flexibility the VA desired. Ziegler was able to fully fund the project at an acceptable cost of capital level for both the VA and its bondholders.

"Our team worked extremely hard to bring forth the strong merits of the financing that will enable the Louis Stokes Cleveland VA Medical Center to continue its mission in providing efficient, high quality healthcare to veterans in Northeast Ohio," John Hanley, a managing director at Ziegler and lead banker commented on the recent financing. He went on to state that, "Our strength as a firm was finding creative solutions in a difficult market to meet the needs of both investors and the VA."

The Cleveland VA Medical Center opened in 1961 and today is the 5th largest VA hospital. It ranks 1st nationally in efficiency for large VA tertiary teaching hospitals. The Cleveland VA provides care to eligible veterans residing in 24 counties located in the northeastern portion of the state of Ohio. It currently operates a 256-bed general acute and tertiary care hospital, 84 psychiatric beds, 190-bed nursing home, domiciliary and residential services (122-bed domiciliary and an 83-bed substance abuse domiciliary). In addition, the Cleveland VA Medical Center operates 12 community-based outpatient clinics.

The new 6-story office building will be the first Tier III security building in Cleveland and will also house a Tier III data center, the first in the Midwest and one of only three in the country for the U.S. Department of Veterans Affairs.

About Ziegler:

The Ziegler Companies, Inc. (PINKSHEETS: ZGCO) is a growth-oriented boutique investment banking and investment services firm with a primary focus in the healthcare, senior living and church and school sectors. Operations encompass capital markets (capital advisory services, bond underwriting, mortgage banking, institutional sales and trading) and wealth management, including asset management and alternative investments.

Nationally, Ziegler's Capital Markets is ranked as one of the leading investment banking firms for non-profit healthcare and senior living providers, as well as religious institutions and schools.

Ziegler Wealth Management (retail brokerage) encompasses investment and consulting services for individuals, families, business owners and institutions nationwide.

Ziegler's alternative investing activities include raising and deploying capital through private investment funds with investment objectives related to the real estate, services and technology sectors of the healthcare and senior living industries.

Ziegler Capital Management, LLC provides separate account management for individuals, corporations, foundations and endowments. Total assets under management are approximately $2.2 billion.

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