Gurwin Jewish—Fay J. Lindner Residences
In November 2013, Prager served as direct placement agent on the Series 2013 refunding issue for Gurwin Jewish—Fay J. Lindner Residences, an assisted living facility on Long Island, New York. The transaction combined a current refunding of Gurwin's outstanding Series 1999A bonds and an advanced refunding of their outstanding Series 2004 bonds, resulting in $7.358 million in net present value debt service savings, or 18.4 percent of the refunded par amount. The prior bonds had interest rates ranging from 5.875 percent to 6.70 percent. Prager was able to place the full $37.675 million of new bonds with a single buyer at a rate of 4.10 percent over a 20-year term with a 25 year amortization. This equated to approximately $700,000 in annual cash flow debt service savings.
As direct placement agent, Prager's experienced bankers managed key aspects of the transaction. The Firm worked with bond counsel to structure the bonds to ensure they complied with tax law and did not jeopardize the tax-exempt status of the bonds. In addition, Prager coordinated with the trustee to release certain funds associated with the prior bonds. At the time of closing, Prager managed the flow of funds for the transaction, ensuring that the full amount of bond proceeds was distributed to the correct parties and accounts.