Fitch has assigned an 'A-' rating to the $59.0 million Health and Educational Facilities Authority of the State of Missouri senior living facilities revenue refunding bonds (Lutheran Senior Services (LSS)) series 2007A-C. In addition, Fitch affirms the 'A-' rating on the approximately $94.1 million in outstanding debt, as listed below. The Rating Outlook is Stable.
Bond proceeds will be used to current refund LSS' outstanding series 1997 bonds, economically defease approximately $27.7 million debt issued for Meridian Village, fund approximately $9.5 million of capital expenditures, fund a debt service reserve fund, and pay costs of issuance. Meridian Village is a 261-unit continuing care retirement community (CCRC) located in Glen Carbon, IL. The bonds are expected to price the week of Jan. 22nd through negotiation led by Ziegler Capital Markets Group.
Unless otherwise specified, financial data and ratios reflect consolidating audited financial statements. In performing the analysis, Fitch considered both the obligated group and non-obligated affiliates. However, Fitch did not include the $46.1 million of debt associated with Lutheran Hillside Village (LHV) (rated 'A-' by Fitch) which has been unconditionally guaranteed by LSS. Through the nine month interim period ended Sept. 30, 2007 LHV covered maximum annual debt service by a solid 1.8 times (x) with overall occupancy of 97.8%. Fitch views the improving financial performance at LHV favorably and believes that a call on the guarantee from LSS is not likely.
