BLOOMINGTON, MINNESOTA, NOVEMBER 18, 2010 — Lifespace Communities, Inc., owner of Friendship Village of Bloomington senior living community, has received an “A” from Fitch Ratings for a tax exempt bond offering totaling more than $30 million. The bond proceeds, issued today, will be used in part to pay for improvements at Friendship Village of Bloomington and the company’s additional 10 senior living communities located in seven states.
“An ‘A’ rating from one of the nation’s major rating agencies is a significant achievement,” says Rick Meyer, executive director at Friendship Village of Bloomington. “At a time when some continuing care retirement communities across the country are struggling financially, our ‘A’ rating is an important indicator of our financial strength and stability.”
Tax-Exempt Bond Offering
The “A” bond rating allows Lifespace Communities, a not-for-profit organization, to raise capital more easily, with lower financing and debt costs. “We can meet our capital/construction needs in the future on more favorable terms,” Meyer says. “That’s advantageous for our residents, who benefit from the capital improvements.”
The bond proceeds will be used in part for capital improvements and wellness programs at Friendship Village of Bloomington.
“We continue to reinvest in the community, enhancing the quality of life for all our residents,” Meyer says. “As a result, our occupancy has remained consistent in spite of the economy. This was another factor in our ‘A’ rating.”
According to Fitch, the rating reflects Lifespace Communities’ light debt and strong debt service coverage, capital spending and revenue. It’s also based on the diverse locations of the 11 senior living communities, located in Minnesota, Iowa, Nebraska, Kansas, Illinois, Pennsylvania and Florida.
Highest-Rated System Provider
With multiple continuing care retirement communities (CCRCs) across the country, Lifespace Communities is considered a “system provider.” According to Jim LeBuhn, Fitch senior director, “Within the Fitch portfolio of rated credits, there is no system rated higher than Lifespace Communities.”
“We encourage seniors to scrutinize this kind of information before joining a community,” Meyer says. “We want them to know that their community is a safe, sound investment.”
All 11 Lifespace communities are accredited by the Commission on Accreditation of Rehabilitation Facilities and the Continuing Care Accreditation Commission (CARF-CCAC). Only 15% of communities nationally have received this accreditation, which recognizes the highest standards in administration, finance, care and services to seniors.
Lifespace Communities, Inc. is a nationally recognized not-for-profit leader providing an active lifestyle to more than 4,500 seniors residing in 11 communities in seven states. Founded in 1976, the company’s mission is to create and sustain communities celebrating the limitless possibilities in the lives of seniors. For more information, visit www.lifespacecommunities.com and www.friendshipvillagemn.com.
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