Parkside Senior Services, a division of Parkside Co., completed a $21.4 million refunding last week that allowed one of its facilities to refinance its debt at a much lower rate
The bonds were sold by the Massachusetts Industrial Finance Agency for the Brookhaven Life Care Community. The senior manager on the deal was Herbert J. Sims & Co., a Connecticut firm.
Brookhaven is a senior citizens' center in Lexington, Mass.
"The refinancing will save the Brookhaven Corp. over $370,000 annually," said Richard Johnson, Brookhaven's executive director.
In addition to reducing the center's debt service burden, the Parkside refinancing will improve services to the senior citizens who live there, according to a release from the center.
"With the over-3,000 units Parkside manages throughout New England and the United States, I am pleased at the institutional market's appetite for quality financial products such as this tax-exempt sale," said John H. Lind, senior vice president of development of Parkside Senior Services.
"The Brookhaven refinancing and several others presently in the structuring phase have positioned Parkside to take advantage of the improving financial markets," Lind said.
The refunding was split in two. The first part comprised serial bonds, priced to yield from 4.25% in 1995 to 6.60% in 2004. There were also three term bonds, due 2001 2009, and 2015, and priced to yield 6.75%, 7.00%, and 7.00%.
The second section of the loan was two maturities of adjustable-rate put bonds. The put bonds were priced to yield an initial interest rate of 6.60% in 2017 and 6.00% in 2018.