The LifeSpire of Virginia leadership team is pleased to announce that Fitch Ratings—an award-winning provider of credit ratings, commentary and research—affirmed its 2020 assessment of the organization by assigning a ‘BBB’ rating to approximately $80.9 million residential care facilities revenue and refunding bonds, series 2021, to be issued by the Virginia Small Business Financing Authority on behalf of LifeSpire of Virginia.
Proceeds from the series 2021 bonds will be used to purchase the assisted living neighborhood, independent living homes and approximately 75 acres of undeveloped land at The Summit in Lynchburg, Va. The bonds will also reimburse LifeSpire of Virginia for previously paid costs for cottage expansions as well as new cottage expansions at Lakewood Retirement Community and Culpeper Retirement Community, refinance LifeSpire of Virginia’s series 2017 bonds; fund the additional debt service reserve fund requirements associated with the series 2021 bonds and pay the costs of issuance. The bonds are expected to sell on or about August 4.
“The Summit, LifeSpire of Virginia and our family of communities are financially sound and operating independently. This acquisition will further strengthen both parties by sharing best practices, adding operational efficiencies and management expertise,” said LifeSpire of Virginia President and CEO Jonathan Cook.
The Fitch report states that its ‘BBB’ rating reflects the expected resilience of LifeSpire of Virginia’s financial profile throughout forward-looking scenario analysis, in the context of the strength of its business profile, which allows it to absorb the debt associated with the acquisition of The Summit and remain at its current rating.
The full Fitch Ratings report is available online.