ZIEGLER CLOSES $191,460,000 FINANCING FOR ST. JOHN'S UNITED (MT)
Ziegler, a specialty investment bank, has successfully closed the St. John's United's Aeries Project, funded with $191,460,000 Series 2026ABC Bonds through the Montana Facility Finance Authority. The bonds are scheduled to close in July.
The borrower, St. John's Lutheran Ministries, Inc. d/b/a St. John's United, along with St. John's Foundation and Missions United, Inc., comprises a group of Montana nonprofit corporations under Section 501(c)(3) of the Internal Revenue Code. The Obligated Group operates a multi-campus senior living system in the Billings and Laurel, Montana markets, offering services that include independent living, assisted living, memory care, and skilled nursing. The organization currently operates five senior living communities with a total of 201 independent living units, 140 assisted living units, 72 memory care units, and 88 skilled nursing beds.
The Aeries project entails significant expansion, which includes a new 12-story tower on the main St. John's United campus, featuring approximately 95 independent living units and various common areas and amenities. Additionally, the project will introduce 19 moderate income independent living apartments known as Chapel Court Living and four new independent living four-plex buildings at the WyndStone campus.
The Series 2026ABC Bonds are secured by the Obligated Group and are not rated. The proceeds will be utilized to finance several aspects of the Aeries project, refinance existing debt, pay final contributions to SCL Health – Montana, fund a debt service reserve, capitalize interest on the bonds, and cover certain issuance costs. The bonds comprise a mix of tax-exempt short-term and long-term fixed-rate bonds, designed to support the financing structure of the Obligated Group.
Daren Bell, Managing Director of Ziegler's Senior Living Finance Practice, expressed pride in partnering with St. John's on this complex financing, noting the inclusion of Missions United to the Obligated Group as a key aspect that enhances organizational strength and future success. David Trost, CEO of St. John's United, highlighted the financing as a milestone in fulfilling their commitment to serving older adults and families, saying that the project will enhance their continuum of care.