By Devika Patel
Knoxville, Tenn., Jan. 13 – Peconic Landing at Southold closed a $24.29 million private placement of forward delivery bonds on Dec. 19, according to a press release.
The company closed series 2019A bonds for $1,965,000 and series 2019B forward delivery bonds for $22,325,000.
The forward delivery bonds due 2040 will settle in November 2020 and carry an interest rate of 3.45%.
The company’s 2010 bonds cannot be refinanced until late 2020. As a result, HJ Sims, the investing bank, proposed issuing the forward delivery bonds, which are being sold with a set interest rate and settlement not occurring until the call date for the 2010 bonds in 2020.
Proceeds of the new bonds will then be used to repay the 2010 bonds. An additional $1.97 million of new bond proceeds will be used for capital improvements to enhance resident experience, including additional auditorium seating and a dining venue.
The new bonds were assigned a BBB- rating from Fitch.
Peconic Landing is a retirement community based in Greenport, N.Y.
| Issuer: | Peconic Landing at Southold
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| Issue: | Forward delivery bonds
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| Amount: | $24.29 million
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| Maturity: | 2040
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| Coupon: | 3.45%
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| Closing date: | Dec. 19
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| Settlement date: | November 2020
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| Ratings: | Fitch: BBB-
|
| Distribution: | Private placement
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