$3.5 MILLION ISSUED ON BEHALF OF CHRISTIAN HEALTH CARE CENTER

(Trenton)  Today, the New Jersey Health Care Facilities Financing Authority (the "Authority") successfully closed a $3,500,000 bond issuance on behalf of Christian Health Care Center ("CCHC"), located in Wyckoff.  The bonds were issued through the Authority's Equipment Revenue Note Program, which is a private placement program designed to reduce issuance time for smaller equipment financing and refinancing projects.

Privately placed with Bank of America Public Capital Corp, the bonds were secured by a first lien on the financed equipment. Two notes were issued due to different amortization schedules: Note A has a 5-year term (with a balloon payment in the 60th month) and a 10-year amortization, and Note B has a 5-year term and a 5-year amortization. Both share a low interest rate of 3.6% and a final maturity date of January 17, 2012. 

Since the purpose of the Equipment Revenue Note Program is to reduce issuance time, it should be noted that CCHC submitted the Memorandum of Understanding to apply for the bond issue on November 13, 2007.  Therefore, with the mid-January closing, it took only two months from start to finish for CCHC to receive the proceeds from the transaction. 

CCHC provides a continuum of elder care and mental health services including skilled nursing care, residential care, assisted living, inpatient and outpatient mental health care and medical and social day care.  The proceeds of Note A were used to finance the purchase and installation of laundry equipment and improvements to laundry facilities, furniture, kitchen appliances, and energy generation and management equipment; the proceeds of Note B financed computer equipment and software.

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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