Press Release

        

For More Information Contact the NJHCFFA
Communications Department:
609-292-8585 X142

For Release: April 20, 2007

 
MARK E. HOPKINS
EXECUTIVE DIRECTOR

CONTACT: Stephanie Bilovsky
PHONE: 609-292-8585
Date: April 20, 2007

 

NJHCFFA ISSUES OVER $100 MILLION WORTH OF BONDS
IN COMPOSITE ON BEHALF OF CATHOLIC HEALTH EAST

 

(Trenton)  Yesterday, the New Jersey Health Care Facilities Financing Authority (the "NJHCFFA") successfully closed a $101,395,000 transaction on behalf of Catholic Health East ("CHE"), a multi-institutional health system with facilities located in eleven eastern states from Maine to Florida. In New Jersey, CHE operates Our Lady of Lourdes Medical Center in Camden, Lourdes Medical Center of Burlington County in Willingboro, and Saint Francis Medical Center in Trenton.

 

In an effort to achieve savings through advance refunding its outstanding debt, CHE had bonds issued and marketed simultaneously on its behalf through six different authorities for a total of $333,430,000.  The roughly $101 million worth of bonds issued through the NJHCFFA were the only New Jersey bonds issued in the transaction and, as such, the proceeds from those bonds alone will be used to advance refund outstanding CHE indebtedness in New Jersey. 

 

Jointly marketed with the NJHCFFA bonds was an issue for: $93,515,000 through the Development Authority of Fulton County in Georgia; $20,560,000 through the Development Authority of the Unified Government of Athens in Georgia; $51,475,000 through the Massachusetts Health and Educational Facilities Authority; $17,135,000 through the Montgomery County Higher Education and Health Authority in Pennsylvania; and, $49,350,000 through the Saint Mary Hospital Authority in Pennsylvania. 

    

The New Jersey bonds were sold as an uninsured public offering issued on CHE's ratings, which are "A1" by Moody's, "A" by Standard & Poors and "A+" by Fitch.  Early predictors show a savings of approximately $4.8 million on CHE's New Jersey debt, or 4.6% of the refunded bonds, through this issuance.

 

Based in Newtown Square, Pennsylvania, CHE operates 33 acute care hospitals, 4 long term acute care hospitals, 39 freestanding and hospital-based long term care facilities, 13 assisted living facilities, 5 continuing care retirement communities, 8 behavioral health and rehabilitation facilities, 32 home health/hospice agencies, and numerous ambulatory and community-based health services.

 

The NJHCFFA is the primary issuer of municipal bonds for New Jersey's health care organizations. Created in 1972 by an act of the Legislature to provide not-for-profit health care providers with access to low-cost capital, the NJHCFFA has issued over $12 billion in bonds on behalf of over 140 health care organizations throughout the state.

 

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