Senior Quality Lifestyles buys back 72.28% of Tarrant County bonds

By Susanna Moon

Chicago, June 8 – Senior Quality Lifestyles Corp. said investors had tendered 72.28% of the $53.79 million of outstanding series 2006A retirement facility revenue bonds issued by Tarrant County Cultural Education Facilities Finance Corp. for the Northwest Senior Housing Corp. – Edgemere Project.

Investors had tendered $9,525,000 of the $19.27 million of 6% series 2006A bonds due Nov. 15, 2026 and $29,355,000 of the $34.52 million of 6% series 2006AB bonds due Nov. 15, 2036, according to a company notice.

The offer expired at 5 p.m. ET on May 20, with settlement following on June 4. The offer was announced April 24.

The tender offer payment per $1,000 principal amount of bonds was $1,075 for the 2006A bonds and $1,065 for the 2006AB bonds.

Holders will also receive accrued interest up to but excluding the settlement date.

The purpose of the offer was to refinance the 2006A bonds with new bonds, thus amending the liquidity requirement and rate covenant contained in the indenture for the notes.

Senior Quality Lifestyles previously said it was seeking to reduce the liquidity requirement to current market levels of 150 days of cash on hand from the current 500 days of cash on hand, according to a previous notice. The company also was seeking to amend the rate covenant to exclude debt related to acquisition, construction, renovation or replacement projects from the calculation of the historical debt service coverage ratio until certain milestone dates.

The offer was contingent on a minimum tender amount of at least $4.5 million and the issuance by Tarrant County Cultural Education of new series 2015A and 2015B bonds; the new 2015B bonds will finance the tender offer consideration.

Bank of New York Mellon Trust Co., NA (214 468-6117, attn: Michael K. Herberger, or Michael.herberger@bnymelon.com) is the trustee and tender agent.

B.C. Ziegler and Co. (866 943-4537, attn: Yolanda Agrimonti) is the dealer manager for the offer.

Dallas-based Senior Quality Lifestyles owns and operates senior living communities in Texas.

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