Press Release

    

For More Information Contact the NJHCFFA
Communications Department:
609-292-8585 X142
For Release: March 28, 2008

 
MARK E. HOPKINS
EXECUTIVE DIRECTOR

CONTACT: Stephanie Bilovsky
PHONE: 609-292-8585
Date: March 28, 2008

 

$45,840,000 ISSUED IN BONDS ON BEHALF OF WARREN HOSPITAL

 

(Trenton)  Yesterday, the New Jersey Health Care Facilities Financing Authority (the "Authority") successfully closed a $45,840,000 bond issuance on behalf of Warren Hospital.  Proceeds of the bonds will be used to: refund the Authority's Radian-insured Series 1995 bonds, refund the Authority's Series 2002 Private Placement with Commerce Bank, N.A., refinance a term loan with Commerce Bank, N.A., and reimburse the hospital for capital expenditures.

 

The bonds were issued in two series: 2008A ($33,840,000) has a final maturity date of July 1, 2038; and 2008B ($12,000,000) has a final maturity date of July 1st, 2018. Unrated and uninsured, the hospital relied heavily on the abilities of Cain Brothers, the placement agent, for the transaction, to find the right purchaser for the bonds.  Secured by a Note issued under a Master Trust Indenture, a pledge of gross receipts and a mortgage on certain properties, the bonds received an all-in interest cost of 7.44% (Series 2008A) and 10.82% (Series 2008B).

 

The bond issuance provided Warren Hospital with the capital needed to put additional cash on the hospital's books giving the hospital more flexibility to implement further turnaround strategies to strengthen the hospital's finances.  Jeffrey C. Goodwin, Warren Hospital's President and Chief Executive Officer, thanked the Authority Members and staff for their hard work on this transaction.

 

Created in 1972 by an act of the Legislature to provide not-for-profit health care providers with access to low-cost capital, the Authority is the primary issuer of municipal bonds for New Jersey's health care organizations. During its 35-year history, the Authority has issued over $13 billion in bonds on behalf of over 140 health care organizations throughout the state.

 

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