[August 07, 2018]

ORIX USA and Lancaster Pollard Synergies Complement Brickmont Construction Financing Project

Less than a year after ORIX Corporation USA (ORIX USA) acquired Lancaster Pollard, the two companies displayed the synergies of the acquisition with the closing of a $16.7 million construction financing. The transaction leveraged Lancaster Pollard's expertise in seniors and health care housing and ORIX USA's expertise in municipal and infrastructure financing to support the construction of Brickmont John's Creek, a 120-unit assisted living (AL) and memory care (MC) facility in John's Creek, Georgia, that will be owned and operated by Brickmont Assisted Living.

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Lancaster Pollard placed tax-exempt bonds with ORIX USA, its parent company, to obtain construction financing for Brickmont John's Creek, in accordance with Section 142(d) of the Internal Revenue Code.

"The collaboration between Lancaster Pollard and ORIX USA results in a structure where ORIX USA provides benefits to borrowers by removing many standard municipal market inefficiencies," said Conner Girdley, vice president with Lancaster Pollard in Atlanta. "ORIX USA was able to offer a draw-down bond structure that results in significant savings during construction. Additionally, ORIX USA is flexible with respect to prepayment options, allowing Brickmont the opportunity to refinance into a permanent loan structure should it be deemed more cost-effective."

A business unit of ORIX USA, ORIX Municipal ad Infrastructure has an investment portfolio that includes transactions in a wide range of industries, including health care, housing, education, energy and transportation. Rob Wetzler, managing director, and Ben Forrest, director, led the transaction for ORIX USA. "ORIX USA agreed in advance to purchase all the bonds at a fixed interest rate, eliminating execution risk," Wetzler said. "Further, our program mirrors a construction loan from a bank, providing an attractive non-recourse outlet for highly qualified borrowers like Brickmont to pursue plans for expansion."

Founded in 2014, Brickmont Assisted Living has three other facilities open or under construction and is led by David Vickers, who previously had success founding and growing InTown Suites, an extended-stay hotel chain. By serving as the developer, general contractor, part-owner and manager of Brickmont, Vickers aims to build and operate facilities at a reduced cost and pass those savings along to seniors in the form of high-quality, affordable housing and care.

In September 2017, ORIX USA - the U.S. and Latin America business hub of leading international financial services firm ORIX Corporation (ORIX) - acquired Lancaster Pollard. ORIX USA provides comprehensive capital solutions for multifamily, affordable, seniors and health care real estate through its own business lines and those of its wholly-owned subsidiaries, including Boston Financial Investment Management, Lancaster Pollard and RED Capital Group.

ORIX Corporation USA (ORIX USA)

Since 1981, ORIX USA has provided innovative capital solutions that clients need to propel their business to the next level. ORIX USA and its subsidiaries-Boston Financial Investment Management, Lancaster Pollard, Mariner Investment Group, RB Capital and RED Capital Group-include a team of more than 900 employees spanning more than 30 offices across the U.S. and Brazil. ORIX USA and its family of companies have $57 billion of assets under management, administration and servicing (including $8.6 billion held by the company and its subsidiaries). Its parent company, ORIX Corporation, is a publicly owned international financial services company with operations in 38 countries and regions worldwide. ORIX Corporation is listed on the Tokyo Stock Exchange (8591) and New York Stock Exchange (IX). For more information on ORIX USA, visit www.orix.com.

Lancaster Pollard

Lancaster Pollard helps health care and senior living providers expand and improve their services by providing a full range of investment banking, mortgage banking, private equity, balance sheet financing and M&A advisory services. Lancaster Pollard & Co., LLC, a registered broker/dealer, underwrites taxable and tax-exempt bonds, and provides debt placement and syndication, as well as M&A advisory services. Lancaster Pollard Mortgage Company, LLC originates, underwrites and services mortgage loans insured or guaranteed by governmental agencies. Lancaster Pollard Finance Co., LLC provides balance sheet financing. The Propero™ Seniors Housing Equity Funds provide equity financing for the new development and acquisition of seniors housing and care properties. Lancaster Pollard has provided over $20 billion in debt and equity capital since its inception and its mortgage servicing portfolio exceeds $8.6 billion. The firm's home office is in Columbus, Ohio, and it has regional banking offices in Atlanta; Austin, Tex.; Chicago; Denver; Kansas City, Kan.; Minneapolis; Newport Beach, Calif.; Philadelphia; and San Francisco. Lancaster Pollard is a wholly-owned subsidiary of ORIX Corporation USA. For more information, visit www.lancasterpollard.com.

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