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

For Release:  May 12, 2006

MARK E. HOPKINS
EXECUTIVE DIRECTOR

FOR IMMEDIATE RELEASE
CONTACT:  Stephanie Bilovsky
PHONE: 609-292-8585
Date: May 12, 2006

SOCH $18+ MILLION BOND ISSUE SAVES THE HOSPITAL $2.8 MILLION

(Trenton)  Today, the New Jersey Health Care Facilities Financing Authority (the "Authority") closed a $18,390,000 transaction on behalf of Southern Ocean County Hospital, which is expected to save the hospital nearly $3 million. The financing was performed to currently refund the hospital's 1993 financing and to pay the related costs of issuance.  The Series A bonds were issued on the credit of the hospital and reflect coupon interest rate between 6.125% and 6.25%.  It is projected that at a variable interest rate of 3.6% and with an extended maturity to 2036 there would be a net present value savings of approximately $2.8 million or 13.5% of the refunded bonds.

The bonds, structured as a variable rate transaction, are secured by a Wachovia Bank letter of credit and received an "Aa2/VMIG-1" rating from Moody's Investors Service.

The Authority 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 Authority's statutory powers were expanded in 1998 to include financing for all health care organizations or components thereof. 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.

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