Press Release

      

For More Information Contact the NJHCFFA
Communications Department:
609-292-8585 X120
For Release: June 8, 2007
 
MARK E. HOPKINS
EXECUTIVE DIRECTOR

CONTACT: Stephanie Bilovsky
PHONE: 609-292-8585
Date: June 8, 2007

 

NJHCFFA ISSUES $113,420,000 WORTH OF BONDS
ON BEHALF OF ATLANTICARE REGIONAL MEDICAL CENTER

 

(Trenton) Yesterday, the New Jersey Health Care Facilities Financing Authority (the "Authority") successfully closed a $113,420,000 transaction on behalf of AtlantiCare Regional Medical Center ("AtlantiCare"). With the proceeds of the financing, AtlantiCare will construct and equip a seven-story addition and renovate various areas for its City Division facility. AtlantiCare will also use the funds to construct a bridge connecting the city hospital to the parking garage and to acquire equipment for use at both the Mainland and City Division facilities.

 

The funds will also be used to advance refund a portion of the Series 2002 Bonds and currently refund two CAP loans. By refunding a portion of its Series 2002 Bonds, AtlantiCare will save approximately $2 million (or 5.57% of the refunded principal).Also, the refunding and re-amortizing of two other Authority loans, combined with the interest rate on the Series 2002 Bonds, allowed AtlantiCare to borrow approximately $50 million of new money without any increase to its current maximum annual debt service.

 

Rated "A" by Standard & Poors and Fitch and "A2" by Moody's Investors Service, the bonds received an all-in interest rate of only 4.803%.

 

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 30+-year history, the Authority has issued over $12 billion in bonds on behalf of over 140 health care organizations throughout the state.

 

Please refer any questions regarding the project itself to the hospital. The Authority would be happy to answer any questions you may have about the financing of the project.

 

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