Ziegler investment banking

Z I E G L E R   I N V E S T M E N T   B A N K I N G

CASE STUDY

JULY 1, 2013

ZIEGLER INVESTMENT BANKING

Religion Finance

200 South Wacker Drive | Suite 2000

Chicago, IL 60606

©2014 B.C. Ziegler and Company | Member SIPC & FINRA

CONTACT US

800 366 8899

www.ZieglerLoan.com

“I am thankful for Ziegler and their

expertise as they joined us in the

journey of completing the vision for our

campus. David Schlosser and his group

joined us after we had begun Phase I of

our building project. It was because of

their financial knowledge, people skills

and passion to help churches that I

believe we were able to enter Phase II.

The long term loan, as well as the

ability to pay the debt off early, without

penalties, was extremely attractive. I

believe that Ziegler entered this journey

with us right at the point we needed

them. I am very grateful for their

guidance, their commitment to keep us

informed in every step of the process,

and their ability to understand our

needs. We consider David and the

Ziegler group as friends of Hiland Park

Baptist Church.” 

Dr. Carl Fondren

Executive Pastor

Hiland Park Baptist Church, Inc.

This client’s experience may not be representative of

the experience of other clients, nor is it indicative of

future performance or success.

$7,500,000

First Mortgage Taxable Bonds, Series 2013

Hiland Park Baptist Church | Panama City, FL

H I L A N D   PA R K

B A P T I S T

C H U R C H ,   I N C .  

CLIENT PROFILE

Hiland Park Baptist Church began with a

Vacation Bible School held in 1943 at a local

elementary school building. Reverend J.C.

Alexander, a retired minister, was the first

superintendent and pastor of the services, with

43 enrolled.  In 1944, Reverend A. B. Thomas

became the first pastor. He helped build the first

sanctuary on land that was donated to the

church.  In 1975, a new sanctuary and adjoining

education building were constructed.  In 1997,

the church completed construction of a 12,500

square foot education facility and fellowship hall,

along with remodeling to add preschool space.

Pastor Steven Kyle has been the senior pastor

since April 2010. The church has seen

unprecedented growth under Pastor Kyle’s

leadership. Weekly attendance has grown from

780 to over 1,320, and the church currently

holds two weekly adult worship services along

with two weekly youth worship services.  

The church campus is comprised of three

adjacent parcels that total approximately 10

acres. The church campus contains the 11,814

square foot original sanctuary building,

containing seating for 662. The property also

contains a preschool and office building, a total

of 23,022 square feet, and a two-story fellowship

hall which contains 13,384 square feet of

finished floor space. In total, these three

buildings contain 30 classrooms, 10 offices, 17

public restrooms, a pastor’s study and a kitchen.

In 2012, the church obtained a bank loan used

to finance the construction of a new 57,000

square foot facility, including a 1,575-seat

auditorium, educational space, a choir room, an

indoor playground and an additional parking lot.

Proceeds of the 2013 Series Bonds were used to

redeem in full the outstanding bank loan, to

fund some remaining construction costs, and to

fund a renovation project connecting the original

sanctuary building and the new facility. 

THE ZIEGLER DIFFERENCE

The historic low interest rates prevalent in

2013 provided a perfect opportunity for the

church to access the capital markets. Ziegler

was able to provide refinancing on a long-

term fixed-rate basis.  

Because the long-term bond structure was

utilized, the church was able to obtain a true

25-year fixed-rate and level amortization

period with no balloons or interest rate reset

periods. The average coupon on the bonds

came out to 5.80%. Since the bonds do not

have call protection, the church has the

option to prepay some or all of the debt at

any time without premium or penalty with

30-day notice. This feature gives the church

the best of both worlds – a long-term debt

structure and the ability to prepay without

any type of mark to market or potential

unwind liability that would be associated

with an Interest Rate Swap instrument.