COLUMBUS, Ohio (May 23, 2006) – Indiana’s Grace Village Retirement Community will add 12 private rooms in a new rehabilitation wing and prepare for future expansion with $13.1 million in financing provided today by Lancaster Pollard.

Utilization at the continuing care retirement community’s health care unit has been high, said Jeff Carroll, chief executive officer. “People who are coming in for short-term stays in a nursing home want a private room if possible, and we just didn’t have any of those private rooms,” he said. “It’s really responding to our need in the area.” The community also will start preparing 10 acres for the future construction of 25 new condominiums.

Lancaster Pollard issued and underwrote the tax-exempt bond financing. In addition to funding capital projects, the bond proceeds also refinanced existing indebtedness. Lancaster Pollard structured Grace Village’s letter of credit enhancement, reducing the letter of credit fee by 50 basis points and saving the organization $1.2 million over the life of the bonds. This is the third time the firm and Grace Village have worked together.

“Letters of credit can be renegotiated at any time, but renewal periods often serve as a great catalyst for seeking improved terms,” said Steve Kennedy, Lancaster Pollard vice president. “Grace Village’s reduced letter of credit fee combined with strategically phased projects, an integrated financing plan and responsiveness to community demand assure it will remain a strong provider for decades to come.”

Grace Village serves about 300 senior residents in historic Winona Lake. It offers independent and assisted living, skilled nursing and rehabilitation therapy.

###