Printer Friendly

ASBURY METHODIST HOMES (MD.) $33.7 MILLION SERIES 1993 REVENUES 'A' BY FITCH -- FITCH FINANCIAL WIRE --

 NEW YORK, Nov. 5 /PRNewswire/ -- City of Gaithersburg's, Md., $33.7 million first mortgage economic development revenue refunding bonds, series 1993, issued on behalf of Asbury Methodist Homes, Inc., are rated `A' by Fitch. Proceeds will be used to effect an advance refunding of a portion of the series 1990 bonds of the same issuer and obligor. The un-refunded portion of the series 1990 bonds is affirmed at `A.' The credit trend for both series of bonds is stable. The issue is expected to sell through negotiation with Legg Mason Wood Walker, Inc. as senior manager and Herbert J. Simms & Co. as co-manager during the week of Nov. 8.
 The series 1990 bond issue funded a construction project expanding the number of independent living units to 577 from 393. The project, an apartment building with several common amenities, was finished on time, within budget, and is now fully occupied.
 The `A' rating reflects the 4.82 times (x) historic pro-forma debt service coverage; the moderate debt load as measured by pro forma debt- to-capitalization ratios in the low 50 percent range; very strong unrestricted cash position in excess of debt; excellent location and physical layout of the facilities on a suburban 100-acre campus; and good demand attributes evidenced by very high occupancy rates and waiting lists.
 Concerns include the degree of reliance on non-operating revenue to service debt. For the nine months ended Sept. 30, 1993, operations are showing a loss of $2.7 million offset by $2.8 million of non-operating revenue. The increasingly competitive service area is also noted.
 Asbury is not-for-profit, advance fee, continuing care retirement community in Gaithersburg, about 20 miles north of Washington, D.C. In addition to the 577 independent living units, Asbury operates a 285-bed nursing center and a 196-unit assisted living facility that both enjoy high occupancy. Nearing move-in status are 32 newly-constructed, single- story, two- and three-bedroom villas. Another 42 villas are planned.
 -0- 11/5/93
 /CONTACT: Edward Merrigan of Fitch, 212-908-0513/


CO: Asbury Methodist Homes, Inc. ST: Maryland IN: SU: RTG

CK -- NY070 -- 1397 11/05/93 17:15 EST
COPYRIGHT 1993 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1993 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Nov 5, 1993
Words:351
Previous Article:UNITED AIRLINES PRESENTS PROPOSAL TO IAM TO PRESERVE FLIGHT KITCHEN JOBS
Next Article:MINNEAPOLIS STUDENTS WRITE ESSAYS TO HONOR HEROES AND WIN $1,000
Topics:

Terms of use | Copyright © 2016 Farlex, Inc. | Feedback | For webmasters