BB&T Capital Markets Closes $85,505,000 Financing for LifeSpire of Virginia

Transaction Summary

On October 12, 2016, BB&T Capital Markets closed an $85,505,000 Series 2016 Fixed Rate Bond issue for LifeSpire of Virginia (“LifeSpire”). The proceeds will be used to retire LifeSpire’s existing Series 2006A and Series 2006C Fixed Rate Tax-Exempt Bonds as well as a taxable line of credit.

Testimonials

“Shortly after my arrival at LifeSpire of Virginia as the new CEO in December 2014, the board of directors requested that I bring a more disciplined approach to the management of our communities and ultimately greater balance to our margin versus mission approach. To do so requires partners that truly work in the best interest of their clients. I was relieved to learn of LifeSpire’s pre-existing 20 year relationship with the bankers at BB&T Capital Markets. Not only had LifeSpire of Virginia established aggressive financial goals, we had two large campus repositioning projects in the pipeline. To prepare us, BB&T Capital Markets assisted us in negotiating terms for a temporary bank line of credit, conducted a very successful refinancing and restructuring of our existing debt, and has helped our organization prepare for a successful repositioning of two of our campuses. This level of coordination and effort requires a firm with depth, creativity and commitment. We could not be more pleased that BB&T Capital Markets provides the same level of client service for LifeSpire of Virginia that we exhibit in caring for our residents.”

Jonathan Cook President and CEO of LifeSpire of Virginia

“As a faith-based, not-for-profit organization, we are fortunate to have a deep and talented board, providing priceless experience and expertise in accounting, banking, law, business, senior living and ministry. But over the more than two decades I have served on the board, we have been fortunate to have the BB&T Capital Markets team as a trusted financial advisor and partner. Whether in the best of times or in challenging circumstances, they have provided wise counsel. We consider them to be a vital resource for the board as it fulfills its fiduciary responsibility to residents and other stakeholders.”

Robert L Musick, JrChairman of the Board of Trustees

About the Companies

LifeSpire of Virginia is the parent organization of four not-for-profit retirement communities in the Commonwealth of Virginia, and was formerly known as Virginia
Baptist Homes, Inc. The four communities are:

 - The Culpeper, located in Culpeper, Virginia
 - Lakewood, located in Richmond, Virginia
 - The Chesapeake, located in Newport News, Virginia
 - The Glebe, located in Botetourt County, near Roanoke, Virginia (The Glebe is not member of the Obligated Group)

Currently, the Obligated Group communities consists of a total of 569 independent living units, 158 assisted living units, 29 memory
support units, and 185 skilled nursing beds.

Financing Structure

BB&T Capital Markets dual tracked a bank loan solicitation process and a bond financing process. Refinancing goals and enterprise strategy were communicated to investors and banks (including repositioning projects at several campuses totaling approximately $100 million.) Ultimately, LifeSpire decided to pursue bond financing due to interest rates being at historically low levels in the late summer.

Once the decision to pursue bond financing was made, BB&T set off to market the bonds to retail and institutional investors. During the marketing of the bonds, BB&T and LifeSpire highlighted LifeSpire’s recent improvements in governance, marketing, operations, and financial results and circulated several sets of questions and answers to potential investors. The financing was received extremely well by the market with excellent retail and institutional participation with over 12 institutional accounts placing orders and over $15 million sold to retail investors. The Series 2016 fixed rate bonds were issued with a final maturity of 2038 with yields ranging from 1.90% to 3.88%. BB&T Capital Markets leveraged its industry leading distribution capabilities with LifeSpire’s financial turnaround to lock in a stable and low cost capital structure.

Healthcare

BB&T Capital Markets has a highly experienced team dedicated to the healthcare industry. Our senior living group has an annual financing volume that typically exceeds $1 billion in bond issues, loans and direct placements. Our Mergers & Acquisition Advisory team has executed more than 35 transactions generating in excess of $3 billion of aggregate consideration for clients over the course of their careers.

About BB&T Capital Markets

BB&T Capital Markets offers an integrated platform of equity and debt underwriting, M&A advisory, corporate banking, and sales and trading. Headquartered in Richmond, VA, with offices throughout the US, we have specific expertise within 10 distinct industry verticals including Automotive Aftermarket; Commercial & Industrial; Education; Energy; Financial Services; Food & Agribusiness; Healthcare; Logistics & Transportation Services; Real Estate; and Retail & Consumer. Our commitment to industry expertise, combined with our resources as one of the nation's strongest financial institutions, strategically positions BB&T Capital Markets to build lasting relationships and contribute measurably to the long-term success of our clients.

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  • Aldersgate United Methodist Retirement Community, Inc.

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  • Wesley Commons

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  • LifeSpire of Virginia

    On October 12, 2016, BB&T Capital Markets closed an $85,505,000 Series 2016 Fixed Rate Bond issue for LifeSpire of Virginia (“LifeSpire”). The proceeds will be used to retire LifeSpire’s existing Series 2006A and Series 2006C Fixed Rate Tax-Exempt Bonds as well as a taxable line of credit.

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