Truist Securities Closes $35,620,000 Forward Delivery Financing for Lutheran Services Carolinas

On December 2, 2021, Truist Securities closed $35,620,000 Fixed Rate Bonds for Lutheran Services Carolinas (LSC). The 2021C Bonds were priced in late May, alongside the $109 million Series 2021A Fixed Rate Bonds and $41 million Series 2021B Bank Loan but settled in December via a forward delivery.

The proceeds of the Series 2021A&B Debt were used to fund construction of Trinity Landing, which is a 184 independent living unit project bordering the inland coastal waterway in Wilmington, as well as refinance existing debt.

The proceeds of the Series 2021C Bonds were used to refinance the existing Series 2012 Bonds. The decision was made to refinance the Series 2012 Bonds with a forward delivery to take advantage of market conditions in mid-2021 and combine both financings. The execution of the forward delivery was one of the longest forward deliveries that has ever been completed for a non-rated senior living organization. The refinancing resulted in approximately 13 % NPV Savings and significant cash flow savings.

“Very few people know how complicated a transaction like this is and how many people it takes to make it happen. Thank you to Truist Securities for leading us through the successful financing,” LSC President and CEO Ted Goins said. “It completes our long-term financing, which creates a firm foundation for us to continue to serve so many of North Carolina’s most vulnerable citizens.”