financial advisory service: a fresh approach for your next financing

How often do you contact financial institutions to borrow millions of dollars for expansion or renovation? Maybe once or twice in your career? How well do you understand current pricing and covenants and how they have changed since the last time you borrowed?

Lacking current information to finance an expansion or renovation is costly and avoidable. Aging Research Institute (ARI) can help you make educated decisions to help meet your project needs.

ARI does not provide financing. Instead, we work as part of your team as your financial advisor or expert. We can help you fulfill your fiduciary needs by carefully assisting you in the process of securing millions of dollars in financing.

Here is an example of how we helped CCRC’s save significant amounts through lower borrowing costs:

The CEO’s original intention was to use the same investment bank they had used in prior years. This bank anticipated they would be financing $24 million at a fixed rate for thirty years. ARI asked five investment banks to bid and indicate all fees. The organization’s original investment bank’s fee was at 2.10%.

The new competitive bids came in at a lower rate, between 0.75% - 1.5%. The organization chose one of the structures resulting in a savings of $145,000!

By involving ARI, one organization was offered options and enabled them to reduce the financing by $2,100,000. We accomplished this through the elimination of a debt service reserve fund, reduced fees, and interest expense savings.

This organization saved over $100,000 dollars per year for 30 years through lower principal and interest expenses using ARI’s Financial Advisory Service.

ARI is paid to act in your best interest, not to “do a transaction.” This means that our advice is unbiased as to structure, size, or timing. Who wins? You and your residents!

Contact David G Slack. Prior to joining ARI, David was Senior Vice President at an investment banking firm specializing in financing senior living and health care organizations. Email dslack@agingri.org or call him at 785.550.4365.