SOURCE: Ziegler

Ziegler

December 14, 2011 14:52 ET

Ziegler Closes $28 Million MRC Crestview Financing

CHICAGO, IL--(Marketwire - Dec 14, 2011) - Ziegler, a specialty investment bank, is pleased to announce the successful closing of a $28,295,000 non-rated bond issue for MRC Crestview. MRC Crestview, d/b/a Crestview Retirement Community, is located on 14 acres in Bryan, Texas. Ziegler served as sole manager for the Series 2011 Bonds.

MRC Crestview is a Texas non-profit corporation originally formed in 1962. In 1970, Crestview became part of Methodist Retirement Communities (MRC), a Texas non-profit system that provides management and related support services to MRC Crestview and other affiliated entities. MRC ranks #88 on the LeadingAge Ziegler 100, a list of the largest not-for-profit senior living providers in the nation.

Due to the aging of the existing community, MRC Crestview engaged Greystone Communities to assist in providing development services towards implementing a repositioning of the campus in a two-phased approach. The improvements which constituted Phase I, which was funded with a Ziegler underwritten Series 2010 bond issue, consisted of the construction of an assisted living center with 48 assisted living suites and 18 memory support suites, as well as a health center consisting of 48 skilled nursing beds and related common areas undertaken on seven acres of undeveloped land.

Proceeds of the Series 2011 Bonds will be used to fund Phase II of the redevelopment plan consisting of demolishing the existing community and constructing 92-entrance fee based independent living units and additional common areas for the residents. The new independent living units are 100% pre-sold with a waiting list of more than 40 persons at the time of pricing of the Series 2011 Bonds. Additionally, bond proceeds will be used to fund debt service reserve funds for the Series 2011 Bonds, fund capitalized interest for 22 months, and pay a portion of the costs of issuance.

The Series 2011 Bonds consist of $11,500,000 in temporary debt to be redeemed from initial entrance fees after establishing reserves and $16,795,000 in permanent debt that will amortize with the Series 2010 Bonds to provide aggregate level annual debt service. As with the Series 2010 Bonds, there will be a funded liquidity support agreement in the amount of $1,000,000.

Ziegler is one of the nation's leading underwriters of financing for non-profit senior living providers Ziegler offering investment banking, financial risk management, merger and acquisition services, investment management, seed capital, FHA/HUD, capital and strategic planning as well as senior living research, education, and communication. Rich Scanlon, Managing Director in Ziegler's Senior Living practice, commented, "Crestview has had a 40 year reputation for providing quality senior services in the Bryan/College Station market. The influence of a new management team at MRC is clearly seen on this complex repositioning which will improve the quality and breadth of services that MRC will be able to provide in that market area."

For further information on the structure and use of this issue, please see the Official Statement located on the Electronic Municipal Market Access system's Document Archive.

For more information about Ziegler, please visit us at www.Ziegler.com.

About Ziegler:

The Ziegler Companies, Inc. (PINKSHEETS: ZGCO) together with its affiliates (Ziegler) is a specialty investment bank with unique expertise in complex credit structures and advisory services. Nationally, Ziegler is ranked as one of the leading investment banking firms in its specialty sectors of healthcare, senior living, religion and education finance, as well as corporate finance and FHA/HUD. Headquartered in Chicago, IL with regional and branch offices throughout the U.S., Ziegler creates tailored financial solutions including bond financing, advisory, private placement, seed capital, M&A, risk and asset management. Ziegler serves institutional and individual investors through its wealth management and capital markets distribution channels.

Certain comments in this news release represent forward-looking statements made pursuant to the provisions of the Private Securities Litigation Reform Act of 1995. This client's experience may not be representative of the experience of other clients, nor is it indicative of future performance or success. The forward-looking statements are subject to a number of risks and uncertainties, in particular, the overall financial health of the securities industry, the strength of the healthcare sector of the U.S. economy and the municipal securities marketplace, the ability of the Company to underwrite and distribute securities, the market value of mutual fund portfolios and separate account portfolios advised by the Company, the volume of sales by its retail brokers, the outcome of pending litigation, and the ability to attract and retain qualified employees.

This communication does not constitute an offer to buy these securities. The offering is made only by the Official Statement and through an appropriately registered representative. The Series 2011 Bonds may not be appropriate for all investors. Market value and/or accrued interest will fluctuate during the period held, and, if sold prior to maturity, the yield received may be more or less than the yield calculated at the time of purchase. Discounted yields herein are gross yields to maturity. Discounted bonds may be subject to capital gains tax, rates of which will vary, so investors should consult their own tax advisor with regard to their personal tax situation. Interest on municipal bonds may be exempt from federal income tax but may be subject to tax for residents of certain states. For bonds designated AMT, taxes may exist for certain investors. Ziegler will sell these bonds on a principal basis.

The corporation or its officers, directors, stockholders, or members of their families may at times have a position in the securities mentioned herein and may make purchases or sales of these securities. Not all call or put information is identified in the description above. Please be sure to discuss any special features with your Financial Advisor before deciding whether to invest in these securities.

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