Thu 01/06/2022 15:45 PM
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Relevant Documents:
Trade Activity
Occupancy Report (Nov. 30, 2021)
Interim Financial Disclosure (Nov. 17, 2021)

A $53.07 million second tier tranche of senior living revenue bonds issued by New Hope Cultural Educational Facilities Finance Corp. and lent to Sanctuary LTC LLC traded on heavy volume at 76.375 to yield 9.29% on Jan. 4, according to EMMA.

The 25% drop in price on the second tier Series 2021B bonds first occurred on Dec. 28, 2021, when the entire term bond traded at 75.372 to yield 9.4%. The bond, which carres a 7% interest rate and matures on Jan. 1, 2057, sold at par on Sept. 14, 2021.

The debt is one tranche of a $507.3 million issuance of senior living revenue bonds sold on behalf of Sanctuary LTC, a subsidiary of Texas nonprofit Preservation Freehold Co. The other tranches were $418.6 million in Series 2021A-1 nontaxable senior living revenue bonds and $35.6 million in taxable Series 2021A-2 senior living revenue bonds. A $301 million 5.5% tranche of the Series 2021A-1 first tier bonds traded at 101.9 to yield 5.2% on Jan. 3, according to EMMA.

Proceeds from the offering were used to fund the acquisition of 26 senior healthcare facilities in Oklahoma and Texas. Hilltop Securities and Truist were the underwriters on the deal, and UMB Bank is the bond trustee.

Additionally, New Hope issued $31.2 million of third tier series 2021C bonds under a separate offering. This debt carries an 8% interest rate and matures on Jan. 1, 2057.

The Sanctuary portfolio posted an adjusted pro forma EBITDAR of $3.9 million through September 2021, up from $3 million in July, according to an interim financial report from November. It also disclosed an increase in its occupancy rate to 85.1% through November, up from 81.5% in August, according to EMMA disclosures.

–Chuck Sudo
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