The Oklahoma County Finance Authority sold $6 million in bonds to finance upgrades at a retirement facility undergoing bankruptcy proceedings.
The bonds mature on December 1, 2030, and pay interest at 7%. They did not receive a rating.
The authority is lending the bond proceeds to Central Oklahoma United Methodist Retirement Facility, which does business as Epworth Villa. The facility is located in northern Oklahoma City.
The issuance is the latest lifeline Oklahoma has thrown Epworth Villa, which filed for bankruptcy in September of last year. The facility said that an inability to accept new residents during the COVID-19 pandemic had “materially and adversely” affected its finances due to the difficulties the pandemic created in accepting new residents.
“As a result, the Borrower defaulted on the payment of the debt service due on Prior Bonds,” the official statement accompanying the sale of the bonds reads.
When it announced its bankruptcy, Epworth Villa had more than 400 residents and 300 staff, the Oklahoman reported.
In November, Oklahoma County officials authorized a debt reorganization plan that allowed Epworth Villa to restructure more than $80 million in bonds issued by the finance authority. A federal bankruptcy court approved the restructuring plan in December.
The bonds are limited obligations of the authority, secured by loan repayments by Epworth Villa.
Raymond James & Associates, Inc served as underwriter on the issuance.