Press Release

For More Information Contact the NJHCFFA
Communications Department:
609-292-8585 X142
For Release: December 21, 2005
MARK E. HOPKINS
EXECUTIVE DIRECTOR

CONTACT: Stephanie Zschunke
PHONE: 609-292-8585
Date: December 21, 2005

 

$49.6 MILLION WORTH OF BONDS ISSUED ON BEHALF OF THREE NJ HEALTH CARE
INSTITUTIONS FOR EXPANSIONS AND UPGRADES

 

(Trenton) On December 20, 2005, the New Jersey Health Care Facilities Financing Authority (the "Authority") successfully closed a $49.6 million transaction on behalf of three borrowers through its Variable Rate Composite Program.

  • AtlantiCare Regional Medical Center will receive $25 million in bond proceeds to finance an expansion and renovation project at the Medical Center's City Division including the construction of a new 7-story addition and renovations to the existing hospital space.
  • Christian Health Care Center will use its $6.6 million worth of bond proceeds to finance a portion of the construction of a two-story addition to the psychiatric facility. Proceeds will also be used to finance renovation and construction projects at the long term care facility and acquire property adjacent to the Center's campus to reconfigure the entrance to the facility.
  • JFK Medical Center will use its $18 million worth of bond proceeds to finance and/or reimburse the Medical Center for the costs of building improvements and various items of equipment for hospital use, including renovations to the Access Center, the dietary department, the radiology department, a nursing unit; and finance major purchases such as furniture and equipment for use in various hospital departments including information technology equipment.

The Authority's Variable Rate Composite Program or "COMP Program" enables qualified health care borrowers to access the tax-exempt and/or taxable capital markets at variable interest rates with shared issuance costs. Documents are standardized and bonds can be marketed for more than one borrower at a time, reducing costs of issuance for access to the capital markets. This latest round of COMP issues was the Authority's sixth tranche of the program.

 

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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