Press Release

 

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

 

MARK E. HOPKINS
EXECUTIVE DIRECTOR

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

 

CENTRASTATE HEALTHCARE SYSTEM CONVERTS ~$30 MILLION OF AUCTION RATE BONDS TO VARIABLE RATE DEMAND BONDS

 

(Trenton)  Today, the New Jersey Health Care Facilities Financing Authority (the "Authority") completed a conversion of approximately $30 million worth of auction rate bonds, issued on behalf of CentraState Healthcare System ("CentraState")

 

            In December 2006, the Authority closed a $71,425,000 transaction on behalf of CentraState.  Within that transaction, Series 2006B bonds in the amount of $29,850,000 were issued as taxable auction rate bonds, insured by Assured Guaranty.  The transaction's bond documents included language that allowed for a conversion, and following the collapse of the auction rate market, CentraState decided to convert all of the Series 2006B bonds.

 

            Banc of America Securities LLC served as the remarketing agent for the conversion, and Bank of America, N.A. provided the Liquidity Facility for the bonds.   The initial weekly interest rate for the bonds was set at 2.50%.

 

            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 $14 billion in bonds on behalf of over 140 health care organizations throughout the state.

 

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