Woodland Pond gets approval to refinance debt

The Ulster County Industrial Development Agency board on Wednesday authorized the Woodland Pond assisted living facility in New Paltz to refinance up to $85 million in debt remaining from $117 million in bonds issued 10 years ago.

Woodland Pond President Michelle Gramoglia told the board the refinancing would allow the facility to take advantage of favorable interest rates and cut expenses.

“We’re looking to reduce interest expense from current rates of 6, 7 and 7 ½ (percent) down to approximately 5.25 percent,” she said.

Under the plan, the fa-

cility’s existing debt will be purchased by institutional bond companies at a sale later this month.

“We are swapping fixed

rate for fixed rate, but it will all be the same fixed rate, whatever it lands at” Gramoglia said.

Gramoglia said the refinancing comes at a time Woodland Pond has become financially viable.

“We have moved in this transaction from a whole series

of bond documents to ... (one) that will allow us to enter to additional types of borrowing if certain financial indicators are met without needing to go back to the bond holders for approval,” she said. “So this is a little bit of flexibility. For example if we wish to enter into

an arrangement with a medical services provider, a lot of times they’ll offer equipment on a capital lease basis. This ... will allow us to do that.”

The Industrial Development Agency in October 2007 approved $85.94 million in bonds to Kingston Regional Senior Living Corp.-Woodland

Pond for construction of the 354,000-square-foot facility on North Putt Corners Road. The project was initiated by Kingston Hospital but when that facility became part of HealthAlliance of the Hudson Valley, the new parent company did not have repayment obligations.

Woodland Pond became, financially, a “standalone” entity from the hospital in 2012, and in early 2016, the agency approved changes to the payback terms for bonds. Gramoglia said there are currently about 300 employees at the facility, which has about 355 residents in 301 units.