Press Release

For More Information Contact the NJHCFFA
Communications Department:
609-292-8585 X142
For Release: May 11, 2006
MARK E. HOPKINS
EXECUTIVE DIRECTOR

CONTACT: Stephanie Bilovsky
PHONE: 609-292-8585
Date: May 11, 2006

 

NJHCFFA ISSUES $150 MILLION WORTH OF BONDS ON BEHALF
OF ATLANTIC HEALTH SYSTEM

 

(Trenton)  Yesterday, the New Jersey Health Care Facilities Financing Authority (the "Authority") successfully closed a $150,000,000 transaction on behalf of Atlantic Health System ("AHS"). The proceeds of the financing will be used for a major construction project at AHS' Morristown facility and a disaster recovery system at the Overlook facility.  The project at Morristown, known as the "Heart Hospital," involves the construction of: a new five-story facility; three patient floors on top of an existing structure; a "chiller plant" to provide cooling capacity and emergency power; and, a five-story parking garage.  It also includes expanding both the main lobby of the hospital and an existing parking deck.  This project expects to add 60 licensed beds to the hospital.  The disaster recovery project at Overlook involves the purchase of hardware and software, and any necessary build out to accommodate such equipment. 

 

The bonds, which are insured by Ambac Assurance Corporation, were issued in a multi-modal form, which provides AHS with some flexibility to react to changes in the interest rate market. 

 

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.

 

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.

 

###