Lutheran Services for the Aging and BB&T Collaborate on $27 Million Dollar Financing

Dec. 30, 2009 - PRLog -- (Salisbury, NC) - Salisbury-based Lutheran Services for the Aging (LSA) has announced the completion of a massive long-term financing package with BB&T Financial.  The $27 million bank-qualified tax-exempt package is one of the first in the state made possible through the American Recovery and Reinvestment Act of 2009.   Funds will be used to construct a new LSA nursing home in Wilmington; purchase property in Hickory for future expansion; and provide long-term financing for LSA’s purchase of the Elms at Tanglewood in Clemmons.

The financing, a process involving LSA, BB&T, BB&T Capital Markets, and authorizations by the N.C. Medical Care Commission and the N.C. Local Government Commission, was in development for over a year.

“Our partnership with BB&T will allow us to continue our mission and our strategic plan to serve elders in North Carolina,” said LSA President Ted Goins.  “We want to serve more people, but only when we can do so through good stewardship and conservative strategy.”

As a component of the federal stimulus bill, the bank-qualified bonds encourage banks to provide financing for “shovel-ready” projects.  John Franklin, managing director of BB&T Capital Markets stated, “Bank-qualified tax-exempt debt is a good financing alternative for 501(c)(3) not-for-profit organizations like LSA because it allows access to attractive interest rates associated with tax-exempt obligations without some of the risks inherent in others forms of tax-exempt debt. In addition, there are reduced costs of issuance associated with bank-qualified debt. The advantages of this type of capital, combined with LSA’s current capital needs and LSA’s excellent record of financial stability made LSA a perfect candidate for the program.”

According to LSA Chief Financial Officer Annette Conrad, “We were able to secure very favorable terms including an interest rate of approximately 2 percent.  Low interest, tax-exempt financing allows LSA to put more money into care and services instead of interest and administrative costs.”

Since its incorporation in 1960, LSA has grown from one small nursing home into ma major corporation with nearly 1,100 employees serving nearly 1,300 seniors daily across the state.  As the 58th  largest not-for-profit provider of senior services in the United States, LSA has an annual budget in excess of $66 million.

“Although we have become a very large service provider, we are, first and foremost, a ministry and it is to that end that we strive to expand our mission of service to older adults across the state,” said Goins.  “Financing helps LSA provide the basics.  The generosity of foundations and our dedicated donors allows us to provide the care our elders deserve, and to provide the seed money for new programs and growth.”

Lutheran Services for the Aging now operates five nursing homes, two retirement communities, one free-standing assisted living residence, an adult day services program, geriatric care management, and information and referral services. Over the next five years, LSA is slated to construct four new nursing homes and to expand its home and community-based services at a cost expected to exceed $74 million.

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Lutheran Services for the Aging is a 501(c)(3) charitable organization based in Salisbury, North Carolina and serving elders and others throughout the state. Since its incorporation in 1960, LSA has grown from one small nursing home into a major corporation with nearly 1,100 employees serving nearly 1,300 seniors daily. As the 58th largest not-for-profit provider of senior services in the United States, LSA has an annual budget in excess of $66 million.

The LSA affiliates include: Lutheran Home at Trinity Oaks, Trinity Oaks Retirement Community, and Abundant Living Adult Day Services, Salisbury; Lutheran Home – Hickory; Lutheran Home – Hickory West; Lutheran Home – Winston- Salem; Lutheran Home – Albemarle; Elms at Tanglewood, Clemmons; and Crescent View Retirement Community, Arden.