PORT WASHINGTON NY – The Amsterdam at Harborside, a continuing care retirement community located in Port Washington, New York, has secured $40 million in new funding through the issuance of new taxable revenue bonds and has closed on the restructuring of its existing debt. The infusion of new capital will enable The Amsterdam to fully recover from cash-flow difficulties it encountered as a result of the COVID-19 pandemic.
The Amsterdam at Harborside is a continuing care retirement community which is comprised of 229 independent living apartments, a health center consisting of 26 enriched housing units, 18 enhanced memory support residence units and 56 beds for skilled nursing. The Amsterdam is home to more than 375 seniors and employs over 200 staff members. The Amsterdam is the only Life Care community in Nassau County.
“As a resident and board member of The Amsterdam, I am so appreciative that our leadership has maintained the resident’s lifestyle and level of living that we have come to expect from The Amsterdam,” said resident and Board Member Rhoda Finer. “The team has worked tirelessly to ensure that the residents of The Amsterdam will continue to enjoy a safe and secure home for our future as well.”
Last week, the Nassau County Industrial Development Agency completed the exchange of The Amsterdam’s existing Series 2014 revenue bonds and issued new taxable revenue bonds following approval of The Amsterdam‘s voluntary restructuring plan by the U.S. Bankruptcy Court Eastern District of New York.
The Amsterdam’s court-approved plan provides a long-term resolution of its financial issues, compliance with all applicable New York State law and regulations, the ability to continue to fulfill its charitable mission and gives it the wherewithal to honor its commitments to its residents.
In addition to the $40 million it is receiving in new financing, The Amsterdam’s corporate parent also contributed $9 million in cash and has pledged an additional $9 million in the form of a Liquidity Support Agreement dedicated solely to assisting The Amsterdam maintain statutory compliance with state-mandated minimum liquidity requirements and pay contractually required refunds that may come due.
“We’ve worked hard with our stakeholders to restructure our debt,” said The Amsterdam’s President and CEO James Davis. This refinancing and new money will provide us solid cash flow and puts us fully back on track financially.”
“The institutions that held our debt, the Court and the Nassau County Industrial Development Agency have shown confidence that we provide a high-quality experience and level of service to our residents,” Davis added. “We are grateful for the participation of the New York State Department of Health and Department of Financial Services regulators, bondholders and courts for their understanding and assistance in helping us to identify solutions and move strongly into the future.”
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