FUNDING SECURED FOR NEW CANCER CENTER AND PARKING AT
HACKENSACK UNIVERSITY MEDICAL CENTER

(Trenton) Today, the New Jersey Health Care Facilities Financing Authority (the "Authority") successfully closed a $249,180,000 bond issuance on behalf of Hackensack University Medical Center ("HUMC"). 

In January, HUMC requested the issuance of bonds in an amount not to exceed $150 million for a new construction project consisting of a new cancer center and a 1,000-space parking garage. However, upon the collapse of the auction rate bond market, and with approximately $150 million of auction rate bonds outstanding, HUMC returned to the Authority in February with an amended request to include the refunding of HUMC's 2004 auction rate debt to the transaction. The Authority Members approved, allowing the total project size to increase to roughly $250 million.

The bonds for the new construction project, as well as a portion of the refunding bonds are insured by Assured Guaranty. These bonds were rated "Aaa" by Moody's Investors Service and "AAA" from Fitch Ratings. The remaining refunding bonds were issued on HUMC's credit, which is "A-" by Fitch and "A3" by Moody's. The all-in true interest cost for the transaction is 5.52%. Merrill Lynch and Bear, Stearns & Co. served as co-senior managers for the 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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