COLUMBUS, Ohio (Aug. 24, 2005) – National Church Residences this month increased its future borrowing capacity by grouping its senior health care communities in a way that lets them borrow at low rates on their own credit strength without guarantees from the parent organization.

The nationally-known organization provides affordable housing, health care and social services to elderly residents of its nonprofit communities.

The new health care obligated group created by National Church Residences and longtime investment banker Lancaster Pollard combines five subsidiary entities into a more geographically and revenue diverse borrowing unit that is viewed favorably by creditors. The $32 million restructuring and refinancing means the parent organization can free up the financial resources it had previously used to guarantee the health care properties’ individual indebtedness.

The five long-term health care facilities are located throughout Ohio and serve seniors in need of medical care or assistance with daily activities. Individually, the properties had needed a guarantee from the parent organization to obtain favorable borrowing rates and terms. Together, however, the group’s collective financial strength was utilized in a tax-exempt debt offering to refinance $18 million of existing indebtedness and provide $12 million of new money to expanded its Chillicothe campus and improve the other four Ohio properties. The new obligated group lets the health care facilities leverage each other's strong cash flows and credit strength to create expanded borrowing power for future growth opportunities.

National Church Residences was founded in 1961 and has become a diverse provider of long-term care and senior living services, and with more than 225 facilities in the United States, it is one of the largest nonprofit owner/operators of affordable senior housing in the country.

At the same time National Church Residences created the health care obligated group, it refinanced a portion of its first and flagship continuing care retirement community, Bristol Village Homes in Waverly, Ohio, utilizing an $8.75 million tax-exempt bond offering that included $2 million of new money to renovate independent living cottages. Lancaster Pollard structured the financing as a letter-of-credit-backed bond offering to provide the lowest possible interest cost.

The restructuring and refinancings are National Church Residences’ latest moves in an ongoing relationship with Lancaster Pollard. The national investment and mortgage banking company focuses on senior living, affordable housing and hospitals, offering an ideal fit for National Church Residences.

“National Church Residences continues to grow and prosper because it pursues sound operational and financial strategies that are greatly facilitating the delivery of its mission,” Lancaster Pollard President Brian Pollard said. “The mutual knowledge and familiarity gained by our 15-year relationship continues to foster new ideas that will further facilitate NCR’s growth and status as one of the nation’s preeminent providers of senior living services.”

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