Rogue Valley Manor (RVM), a 668-acre Continuing Care Retirement Community by Pacific Retirement Services, Inc., is pleased to announce its recent ‘A’ rating from Fitch Ratings. Fitch has assigned an underlying ‘A’ rating to the $65 million Hospital Facility Authority of the City of Medford, Oregon, Revenue Bonds (Rogue Valley Manor Project) Series 2007, and to RVM’s outstanding 2002 bonds. The 2007 bonds are expected to be issued as variable-rate demand bonds backed by an irrevocable direct-pay letter of credit from Bank of America, and are anticipated to be priced by Cain Brothers, through negotiation, during the week of December 3, 2007.
According to Fitch Ratings, “The ‘A’ rating is supported by Rogue Valley Manor’s excellent competitive position, strong management practices, long operating history and community presence. Additional ratings factors were its solid liquidity position relative to expenses as evidenced by days cash on hand of 659 as of June 30, 2007, and its solid operating history and high occupancy in independent living. RVM has been in continuous operation since 1961 and is the only full-service retirement community in the Medford, Oregon, market. Management of the facility is led by Pacific Retirement Services, which Fitch views as an industry leader.”
“The Bond proceeds will help fund needed RVM renovation and expansion projects,” says Pacific Retirement Services CFO Jerry Schoeggl, “including the Health Care Center expansion; remodeling of the main Front Entrance, Lobby and Dining Room; and the Fitness Center expansion. The Health Care Center expansion is adding more independent living and residential living apartments to the RVM campus, which helped to lower our debt burden for this rating, according to Fitch. Bond proceeds will also fund approximately $5 million in routine capital expenditures and the issuance costs of the 2007 bonds.”
Fitch also says, “The Rating outlook is stable. Despite the increase in additional debt, Fitch believes that RVM is well positioned to improve profitability with strong liquidity indicators that provide it with flexibility in the unlikely event of soft occupancy in its independent living units. The Stable Rating Outlook assumes continued sound operating performance and stable occupancy rates in independent living and residential living units and improved occupancy in skilled nursing. Fitch expects liquidity to remain solid over the near term.”
RVM currently consists of 581 Independent Living residences, 44 Residential Living residences, 72 Skilled Nursing beds and 21 Special Care beds for Alzheimer’s and other memory impairing conditions. In the fiscal year that ended September 30, 2006, revenues for Rogue Valley Manor, Inc., totaled approximately $33.75 million.
“Rogue Valley Manor has received national awards for its services to seniors–on and off the campus–and residency is very much in demand,” says RVM Executive Administrator Kevin McLoughlin. “This will only increase as more and more baby boomers retire. As a not-for-profit organization, these Bonds allow us to make important improvements that will prepare RVM to meet the needs of current and future residents as they age.”
Fitch’s rating definitions and the terms of use of such ratings are available on the agency’s website at www.fitchratings.com. For more information about RVM’s Fitch rating, please contact Sarah Prewitt at (541) 857-7028. To learn more about living at Rogue Valley Manor, call (800) 848-7868 or visit www.retirement.org/rvm.
About Pacific Retirement Services, Inc.
Rogue Valley Manor is an affiliate of Pacific Retirement Services, Inc. (PRS), a nationally recognized not-for-profit corporation that serves a family of 50 retirement communities and service organizations. Headquartered in Medford, Oregon, PRS has approximately 1,714 employees and provides housing and services to more than 4,000 seniors through its many affiliated organizations, including seven Continuing Care Retirement Communities (CCRCs), two managed retirement communities, and twenty-five affordable housing communities.
PRS continues to grow, recently announcing that it has opened another office in Memphis, Tennessee, to serve seniors in the East, South, and Midwest. Last year it announced its new Mirabella brand of urban CCRCs (visit www.mirabellaretirement.org). PRS partners with cities to build affordable senior housing for low-income seniors, and contracts its services to support the success of other retirement communities. For more information about PRS, call (888) 724-6424 or visit www.retirement.org.
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