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Transaction Overview
$109,510,000*
New Jersey Health Care Facilities Financing Authority
Department of Human Services
Lease Revenue Refunding Bonds
(Greystone Park Psychiatric Hospital Project)
Series 2024
| Estimated Size: |
$109,510,000*
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| Security: |
The Series 2024 Bonds are special, limited obligations of the Authority payable from and secured solely by Pledged Revenues under a Trust Indenture dated as of April 1, 2003, as previously supplemented, and as to be further supplemented by a Fifth Supplemental Trust Indenture dated as of May 1, 2024 (together, the “Indenture”), each between the Authority and U.S. Bank Trust Company, National Association, as trustee (the “Trustee”) and other Pledged Property under the Indenture. The Pledged Property has been pledged and assigned by the Authority, pursuant to and in accordance with the terms of the Indenture, to the Trustee for the benefit of holders of all Series of Bonds, including the Series 2024 Bonds. The Sublease and Agreement, dated as of December 3, 2003, as previously amended (the “Agreement”) between the Authority and the New Jersey Department of Human Services (the “DHS”) provides that the DHS shall include in its annual request for appropriation to the Treasurer (the “Treasurer”) of the State of New Jersey (the “State”) an amount equal to the Rent (as defined in the Preliminary Official Statement) payable in the next succeeding Fiscal Year; however, payments to the Authority by DHS pursuant to the Agreement, including payments of Basic Rent (as defined in the Preliminary Official Statement), are subject to and dependent upon appropriations being made from time to time by the New Jersey State Legislature (the “Legislature”) for such purpose. The Legislature has no legal obligation to make such appropriations. THE STATE IS NOT OBLIGATED TO PAY, AND NEITHER THE FAITH AND CREDIT NOR TAXING POWER OF THE STATE OR ANY POLITICAL SUBDIVISION THEREOF (OTHER THAN THE AUTHORITY TO THE LIMITED EXTENT SET FORTH IN THE INDENTURE) IS PLEDGED TO THE PAYMENT OF, THE PRINCIPAL OR REDEMPTION PRICE, IF ANY, OF OR INTEREST ON THE SERIES 2024 BONDS. THE SERIES 2024 BONDS ARE SPECIAL, LIMITED OBLIGATIONS OF THE AUTHORITY, PAYABLE SOLELY OUT OF BASIC RENT RECEIVED FROM DHS AND OTHER PLEDGED PROPERTY UNDER THE INDENTURE AND FROM ANY AMOUNTS OTHERWISE AVAILABLE UNDER THE INDENTURE FOR PAYMENT OF THE SERIES 2024 BONDS. THE SERIES 2024 BONDS DO NOT NOW AND SHALL NEVER CONSTITUTE A CHARGE AGAINST THE GENERAL CREDIT OF THE AUTHORITY. THE AUTHORITY HAS NO TAXING POWER. THE SERIES 2024 BONDS SHALL NOT BE A DEBT OR LIABILITY OF THE STATE OR ANY POLITICAL SUBDIVISION THEREOF (OTHER THAN THE AUTHORITY TO THE LIMITED EXTENT SET FORTH IN THE INDENTURE), EITHER LEGAL, MORAL OR OTHERWISE, AND NOTHING IN THE ACT SHALL BE CONSTRUED TO AUTHORIZE THE AUTHORITY TO INCUR ANY INDEBTEDNESS ON BEHALF OF OR IN ANY WAY OBLIGATE THE STATE OR ANY POLITICAL SUBDIVISION THEREOF (OTHER THAN THE AUTHORITY TO THE LIMITED EXTENT SET FORTH IN THE INDENTURE).
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| Structure: |
Serial Bonds*
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| Expected Delivery Date: |
May 14, 2024*
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| Interest Payment Dates: |
Interest on the Series 2024 Bonds is payable on September 15, 2024, and semi-annually on each March 15 and September 15 thereafter until maturity.
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| Optional Redemption: |
The Series 2024 Bonds are not subject to redemption prior to maturity.
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| Denominations: |
$5,000 or any integral multiple thereof.
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| Principal Due: |
September 15, as set forth on the inside front cover of the Preliminary Official Statement.
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| Ratings: |
See “RATINGS” in the Preliminary Official Statement.
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| Tax Status: |
Federal and New Jersey State tax-exempt**
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| Preliminary Official Statement PDF: |
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*Preliminary, subject to change.
** In the opinion of M. Jeremy Ostow, Bond Counsel to the Authority, under existing statutes, regulations, rulings and court decisions, and assuming compliance by the Authority with certain requirements described in “TAX MATTERS” in the Preliminary Official Statement, interest on the Series 2024 Bonds is not includable in gross income of the owners thereof for federal income tax purposes pursuant to Section 103 of the Internal Revenue Code of 1986, as amended (the “Code”), and is not an item of tax preference for purposes of calculating the federal alternative minimum tax imposed on individuals. For tax years beginning after December 31, 2022, interest on the Series 2024 Bonds may affect the federal alternative minimum tax imposed on certain corporations. Bond Counsel is also of the opinion that, under existing law, interest on the Series 2024 Bonds and any gain realized on the sale thereof are not includable in gross income under the New Jersey Gross Income Tax Act, as amended. See “TAX MATTERS” in the Preliminary Official Statement.
Official Site of The State of New Jersey