Good Samaritans seeking $75M in tax-exempt bonds

DENVER — The Colorado Health Facilities Authority plans to issue tax-exempt bonds worth up to $75 million for the Evangelical Lutheran Good Samaritans Society’s expansion across 11 states.

About $16 million of the bonds — 21 percent of the issue — will finance the nonprofit long-term care organization’s growth in Colorado.

Of that portion, nearly $13 million will fund construction of The Good Samaritan Village in Estes Park. The new facility at 1751 N. Lake Road will include 34 apartments, 24 assisted living units and 46 duplexes for the elderly.

The Fort Collins Good Samaritan Village at 508 Trilby Road will receive $750,000 for remodeling that includes a new dining room. Another $2.3 million will be directed to the Heritage Commons in Greeley, which includes about 20 congregate living spaces.

The Good Samaritans also have Colorado locations in Boulder, Loveland and Simla, which will not receive funding through this bond issue.

Expected to close Oct. 24, this deal marks the second bond issue the Health Facilities Authority has sponsored for the Sioux Falls, S.D.-based Good Samaritans: The first one, offered in 2000, raised $37 million.

The Health Facilities Authority was established through legislation nearly 25 years ago to serve as a conduit issuer of tax-exempt bonds for nonprofit health facilities. It is not a state agency and receives no funding from the state.

“The nonprofit borrower is obligated to repay the loan,´ said Corinne Johnson, executive director for the authority.

The multistate issue for tax-exempt bonds has been in existence in Colorado for nearly five years. Johnson said the cross-state issue makes sense because many health-care organizations maintain facilities in numerous states.

“Given how health-care systems are set up these days, it’s a much more efficient, cost-effective way of financing,” she said.

Tom Peterson, chief investment officer for the Good Samaritans, said the multistate issue saves time and money for organizations like his.

“When you do a bond issue there are certain fixed costs. Whether it’s $3 million or $70 million, the fixed costs are the same,” Peterson said. “But if you roll 20 $2-million deals into one deal, you save an extraordinary amount in preparation time, offering statements, attorney fees and disclosures.”

The investment banker for the deal is Minneapolis-based Dougherty and Co. and the Denver office of Kutak Rock serves as bond counsel.

on Facebook on LinkedIn