Bell Cnty Hlth Fac Dev Corp,TX Bnds Rtd A- by S&P.NEW YORK--(BUSINESS WIRE)--July 1, 1998--Standard & Poor's CreditWire 7/1/98 -- Standard & Poor's today assigned its single-'A'-minus rating to Bell County Health Facilities Development Corp., Texas' $70 million revenue bonds issued for Buckner Retirement Services Inc., Texas. The rating reflects: -- A highly capable management team; -- The size and geographical diversity of this six facility continuing care continuing care a professional convention that a veterinarian who is treating an animal is obliged to continue treating that case unless an arrangement is made with its custodian to transfer the care to another practitioner or to a specialist. retirement community; -- A credit and support agreement from Buckner Foundation, with assets of $140 million, to help pay debt service; -- Positive financial performance; and -- Good demand. Offsetting factors include a high debt to capitalization capitalization n. 1) the act of counting anticipated earnings and expenses as capital assets (property, equipment, fixtures) for accounting purposes. 2) the amount of anticipated net earnings which hypothetically can be used for conversion into capital assets. ratio, a lack of coverage due to the startup nature of a new continuing care retirement community in Houston, and the potential for up to $60 million in additional debt by 2001. Bond proceeds will fund construction of a new continuing care retirement community in Beaumont, additional assisted living as·sist·ed living n. A living arrangement in which people with special needs, especially older people with disabilities, reside in a facility that provides help with everyday tasks such as bathing, dressing, and taking medication. units in Longview, and refund the 1996 bonds, which were issued to finance the Houston facility. While Buckner Retirement Services Inc.'s pro forma As a matter of form or for the sake of form. Used to describe accounting, financial, and other statements or conclusions based upon assumed or anticipated facts. The phrase pro forma debt totals $70 million and coverage is not anticipated until 1999 the Buckner Foundation's $140 million asset base is expected to mitigate any short-term operating risk Operating risk The inherent or fundamental risk of a firm, without regard to financial risk. The risk that is created by operating leverage. Also called business risk. of Buckner Retirement Services. Buckner Retirement Services and Buckner Baptist Benevolences (BBB BBB A medium grade assigned to a debt obligation by a rating agency to indicate an adequate ability to pay interest and repay principal. However, adverse developments are more likely to impair this ability than would be the case for bonds rated A and above. ) are the obligated ob·li·gate tr.v. ob·li·gat·ed, ob·li·gat·ing, ob·li·gates 1. To bind, compel, or constrain by a social, legal, or moral tie. See Synonyms at force. 2. To cause to be grateful or indebted; oblige. group for this transaction. Besides Buckner Retirement Services, BBB is comprised of three other subsidiaries: Buckner Children and Family Services, Buckner Adoption and Maternity Services, and Buckner Foundation. BBB's total operating budget Noun 1. operating budget - a budget for current expenses as distinct from financial transactions or permanent improvements budget items, operating cost, operating expense, overhead - the expense of maintaining property (e.g. was $37 million in 1997 with total assets of $230 million. BBB's cash and investments as of Dec. 31, 1997, totaled $148 million, of which $136 million was held by the Buckner Foundation. Buckner Foundation exists solely to support the activities and purposes of BBB and has agreed to provide credit support for the 1998 bonds. This agreement covenants Buckner Foundation to make funds available for debt service payments on the 1998 bonds should the obligated group be unable to do so. BBB's deems itself as among the largest private social-care agency of its kind in the nation. BBB's operates a network of children's homes children's home n → centro de acogida para niños children's home n → foyer m d'accueil (pour enfants) children's home n and retirement communities in 16 cities throughout Texas. BBB is governed by a 27 member board of trustees board of trustees Politics The posse of thugs who oversee an institution's administration. See Board of directors. elected by the Baptist General Convention of Texas The Baptist General Convention of Texas is the oldest surviving Baptist convention in the state of Texas. Background There were Baptists among the first Anglo-American settlers of Texas, but under Spain (and later Mexico), non-Catholic religious worship was prohibited. . At the end of 1994, BBB formed four subsidiary corporations: Buckner Retirement Services Inc., Buckner Children and Family Services, Buckner Adoption and Maternity Services, and Buckner Foundation. Presently the officers of BBB also serve as the officers for each of the subsidiary corporations. Buckner Retirement Services operates six continuing care retirement communities in five cities in Texas List of cities in Texas, arranged in alphabetical order. : Top - 0–9 A B C D E F G H I J K L M N O P Q R S T U V W X Y Z A
The mall opened on October 16, 2002, on the site of the older Parkway City Mall, which was torn down to allow for the construction of the newer facility. , opened in January 1998. Parkway Place with 162 independent living units, 82 assisted living units, 59 nursing beds replaced an older and smaller facility that did not have any independent living units. The expansion of the Longview facility will add 60 assisted living units to 99 current units. Buckner Retirement Services has contracted with Capital Senior Living Inc. to handle the development and management services of both Parkway Place and the Longview facility. Capital Senior Living currently owns and operates 33 communities in 17 states for a total of 5,000 units. Construction of the new Beaumont facility is just getting underway and is expected to be completed by December 1999. This facility is expected to consist of 94 ILU's, 30 ALU's, and 30 skilled nursing beds. Buckner Retirement Services also plans to borrow up to $60 million over the next three years to fund construction of new facilities in North Dallas North Dallas is an expansive area of numerous communities and neighborhoods in Dallas, Texas, (USA). It spans portions of three counties: Collin, Dallas, and Denton, and has strong social ties to two enclaves of Dallas (University Park and Highland Park) and a near-enclave and Georgetown, north of Austin. These new facilities would be modeled on the layout of the new Parkway Place facility. Since opening in January 1998 Parkway Place is filling up steadily with occupancies for May totaling 70% for ILU's, 79% of ALU's, and 95% for the nursing beds and full occupancy is projected by December. After slight losses at Parkway Place in January and March positive operations began in March and Buckner Retirement Services is projecting a surplus of $2.2 million for 1997 from this facility. With six continuing care retirement communities located throughout Texas Buckner Retirement Services has good financial and geographical diversity, as no one of the retirement communities accounts for over 30% of the obligated group's revenues. Each continuing care retirement community has a positive bottom line with the exception of the nursing home in Dallas which posted a small $300,000 one-time loss in 1997 before resuming profitability in 1998. Overall Buckner Retirement Service's financial performance is positive with margins ranging from 7% to 15% of revenues achieved in each of the past four fiscal years. Buckner Retirement Services' five month interim financial statements show a surplus of just over $1 million or a margin of 19%. Projections for Buckner Retirement Services show coverage of debt service beginning in fiscal 1999. Pro forma debt totals $70 million and annual debt service is high at 31% of 1997 revenues while cash and investments for Buckner Retirement Services total $9.2 million. In addition Buckner Retirement Services owns real estate that it intends to dispose of To determine the fate of; to exercise the power of control over; to fix the condition, application, employment, etc. of; to direct or assign for a use. See also: Dispose during 1998. This real estate is recorded at a book value of $5.2 million but has estimated market value of $44 million. Any proceeds Buckner Retirement Services receives from these land sales will be transferred to the Buckner Foundation. Overall cash and investments for BBB as a whole totaled $148 million at fiscal 1997, with the bulk of Buckner's cash and investments found within Buckner Foundation. The foundation assets of $136 million, which have grown from $86 million in 1994, are invested through the Baptist Foundation of Texas. Current asset allocation Asset Allocation The process of dividing a portfolio among major asset categories such as bonds, stocks or cash. The purpose of asset allocation is to reduce risk by diversifying the portfolio. is 60% equities, 35% fixed, and 5% other. Investment returns exceeded 15% in 1995 and 1996 and 20% in 1997. The foundation's spending policy is 5.75% of a 16 quarter moving average. OUTLOOK: STABLE The outlook anticipates that Buckner Retirement Services will achieve good occupancy and positive operations at both its new and existing facilities. In addition Standard & Poor's expects that the unrestricted assets of the foundation will remain at comparable levels as the credit support agreement plays a large role in the overall rating. -- CreditWire
CONTACT: Joshua Stern, New York, 212/208-1241
Malachy Fallon, Dallas, 214/871-1402
Kenneth W Rodgers, New York, 212/208-1771
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