Holy Name Series 2024
On March 27, 2024, the Authority closed on the $55,000,000 privately placed tax-exempt Series 2024 bond financing on behalf of Holy Name Medical Center.
Holy Name Medical Center is a not-for-profit, 361-bed acute care hospital located in Teaneck, New Jersey. The facility offers high-quality, low-cost care to residents of the state’s northeastern region.
Moody’s Investors Service and S&P Global Ratings assigned their municipal bond ratings of “Baa2” and “BBB-,” respectively, to Holy Name Medical Center’s most recent long term public debt.
TD Public Finance LLC directly purchased the 2024 bonds.
The proceeds of this transaction were used to finance and/or reimburse the borrower for the costs of planning, developing, acquiring, constructing, equipping, expanding, furnishing, and renovating all or a portion of various capital projects, including the Villa Marie Clare facility in Saddle River and Phase 1 of its main campus expansion. This specific project will also incorporate the construction of a new outpatient parking garage and day care facility.
Additionally, proceeds will be used to fund capitalized interest, and to pay for costs incurred with issuing and selling the Series 2024 bonds. The transaction was structured as one fixed-rate maturity, with sinking fund installments from 2030 to 2053. The yield on the Series 2024 bonds, maturing on July 1, 2053, is 4.56%.
It is estimated that the borrower saved approximately $8.3 million by using a tax-exempt financing structure versus a taxable one.
RWJBarnabas Health 2024A and 2024B
On April 24, 2024, the Authority priced the $370,330,000 publicly issued tax-exempt Series 2024A bond financing on behalf of RWJBarnabas Health. The bonds were rated AA- by S&P Global Ratings and A1 by Moody’s Investors Service. Jefferies LLC was the senior managing underwriter.
The proceeds of the transaction will be used to finance and/or reimburse RWJBarnabas Health for the costs of planning, developing, acquiring, constructing, equipping, expanding, furnishing and renovating one or more of the following capital projects:
(A) Construction of a new cancer center, renovation of the Emergency Department, relocation of certain outpatient care units, renovations to accommodate a new C-Section suite, as well as the addition of MRI modality for breast imaging at Cooperman Barnabas Medical Center;
(B) Construction of a comprehensive care center including a twelve-story, (approximately 512,000 sq. ft.) building for outpatient care, inpatient care and research facilities, enclosed aerial walkways, and a loading dock at Rutgers Cancer Institute of NJ;
(C) A new 145,760 sq. ft. cancer center and ambulatory care pavilion at the Fort Monmouth Campus of Monmouth Medical Center;
(D) Various renovations and construction of offices for hospital support departments, construction of a new six-level parking garage, and installation of underground utilities and services at Community Medical Center;
(E) Installation of emergency power/electrical equipment, renovation and expansion of the Emergency Department, expansion of imaging and surgical services and catheterization laboratory, renovations to create private inpatient medical/surgery rooms and critical care rooms at Newark Beth Israel Medical Center;
(F) Construction of a new two-story central utility plant within the new parking garage, expansion and renovation of the surgical suite, central sterile processing replacement and support department expansion, and renovations of the Emergency Department at Robert Wood Johnson University Hospital in New Brunswick; and
(G) Expansion of the catheterization laboratory suite and outpatient vascular services, acquisition of a three-story medical office building, construction of a two-story addition to an existing inpatient building to support private medical surgery expansion at Robert Wood Johnson University Hospital Somerset.
Proceeds will also be used for the purchasing, refunding, redeeming and/or legally defeasing of all or a portion of the RWJBarnabas Health Series 2019B-1 bonds, and to pay all or a portion of the costs of the issuance and sale of the Series 2024A bonds.
The transaction was structured with fixed-rate serial bonds maturing from 2025 to 2044 and a bifurcated fixed-rate term bond maturing in 2054.
Yields on the Series 2024A serial bonds ranged from 3.06% to 3.97% for the 2044 maturity.
Yields for the fixed-rate term bonds are as follows:
-for the 4.25% coupon term bond maturing on July 1, 2054, a yield to call of 4.4%; and;
-for the 5.25% coupon term bond maturing on July 1, 2054, a yield to call of 4.28%.
The estimated savings generated from issuing tax-exempt bonds compared to taxable bonds was $43,586,002.
The Series 2024A transaction closed on May 1, 2024 with an all-in total interest cost of 4.348%.
Subsequently, on May 9, 2024, the Authority priced the $250,690,000 publicly issued tax-exempt Series 2024B bond financing on behalf of RWJBarnabas Health. The bonds were rated AA- by S&P Global Ratings and A1 by Moody’s Investors Service.
Jefferies LLC was the senior managing underwriter.
The proceeds will be used to refund, redeem, retire and/or legally defease all or a portion of the following series of outstanding Authority Bonds: (i) Revenue Bonds, Robert Wood Johnson University Hospital Issue, Series 2013A, (ii) Revenue Bonds, Robert Wood Johnson University Hospital Issue, Series 2014A, and/or (iii) Refunding Bonds, Barnabas Health Obligated Group Issue, Series 2014A.Proceeds will also be used to pay certain costs incurred in connection with the issuance and sale of the Series 2024B Bonds.
The transaction was structured with fixed- rate serial bonds maturing in 2029, 2034, and 2036.
Yields on the serial bonds are as follows:
-for the five-year serial bond maturing on July 1, 2029, with a yield of 3.05%;
-for the ten-year serial bond maturing on July 1, 2034, with a yield of 3.10%; and
-for the twelve-year serial bond maturing on July 1, 2036, with a yield of 3.21%.
The estimated savings generated from issuing tax-exempt bonds compared to taxable bonds was $41,239,166.
The Series 2024B transaction closed on May 16, 2024, with an all-in total interest cost of 3.267%.
Greystone and Marlboro
On April 30, 2024, the Authority, along with the Office of Public Finance, priced the $109,975,000 publicly issued tax-exempt Series 2024 Department of Human Services Lease Revenue Refunding Bonds for Greystone Park Psychiatric Hospital (“Greystone,”) as well as the $54,100,000 publicly issued tax-exempt Series 2024 Department of Human Services Lease Revenue Refunding Bonds for Marlboro Psychiatric Hospital (“Marlboro.”)Both series of bonds were rated “A2” by Moody’s, “A-” by S&P Global Ratings, and “A” by Fitch Ratings. JP Morgan Securities LLC was the senior managing underwriter.
The proceeds of the Greystone Series 2024 Bonds will be used for the refunding and defeasance of all or a portion of the Authority’s Greystone Series 2013A and 2013B Bonds, and the payment of related costs of issuance.
The proceeds of the Marlboro Series 2024 Bonds will be used for the refunding and defeasance of all or a portion of the Authority’s Marlboro Series 2013 Bonds, and the payment of related costs of issuance.
Each transaction was structured the same, with fixed-rate serial bonds maturing from 2024 to 2033.
Yields on the serial bonds range from 3.85% in 2024 to 3.28% for the 2033 maturity.
Both transactions closed on May 14, 2024, with all-in total interest costs of 3.468% for the Greystone series and 3.394% for the Marlboro series.
The results of the financing was a present value savings of $3,545,676 for the Greystone series, and $2,950,914 for the Marlboro series.
Paragon Senior Living
On May 15, 2024, the Authority closed on the Series 2024A $11,050,000 tax-exempt bonds and the Series 2024B $13,150,000 federally taxable bonds on behalf of Paragon Senior Living LLC.
Proceeds are expected to be issued to finance the following, but not limited to: the refunding of existing tax-exempt and taxable debt of the borrower through the New Jersey Housing and Mortgage Finance Agency, funding of working capital as well as various capital expenditures related to the campus, and to pay costs of issuances of the bonds.
The bonds were sold as a limited public offering, with Odeon Capital Group as the underwriter.The all-in total interest cost was 6.443% for the Series 2024A bonds and 8.76% for the Series 2024B bonds.
AtlantiCare Regional Medical Center
On September 13, 2023, the Authority closed on the $61,705,000 privately issued tax-exempt Series 2023 bond financing on behalf of AtlantiCare Regional Medical Center.
AtlantiCare Regional Medical Center is a 593-licensed-bed, acute care, not-for-profit hospital facility with two campuses in Atlantic City and Galloway Township, New Jersey. AtlantiCare Health Systems, Inc., the parent company, is currently rated AA- by both S&P Global Ratings and Fitch Ratings on their long-term, public debt.
TD Bank N.A. directly purchased the 2023 bonds.
The proceeds of this transaction were used, among other things, to reimburse the borrower for the costs of planning, development, acquisition, construction, equipping, expansion, furnishing, and renovation of all or a portion of various capital projects of the borrower and its affiliates.
Additionally, proceeds were used to pay costs incurred with issuing and selling the Series 2023 bonds. The transaction was structured as one fixed rate maturity, with sinking fund installments from 2025 to 2053. The yield on the Series 2023 bonds is 4.27%, maturing on July 1, 2053.
It is estimated that the borrower saved approximately $11 million by using a tax-exempt financing structure versus a taxable one.
Holy Name Medical Center
On July 12, 2021, the Authority closed on $45,437,000 of tax-exempt bonds on behalf of Holy Name Medical Center in Teaneck, New Jersey. The proceeds of the transaction were used to currently refund the Authority’s Series 2016A & Series 2016B bonds and pay the related costs of issuance. The bonds were privately placed with TD Bank, N.A.
The all-in TIC was 1.864737%. The present value savings over refunded the bonds was $1,652,815. The estimated savings of tax-exempt versus taxable bonds was $1,174,618. The present value of a 1 basis point change was $37,258.34.
AtlantiCare Health System
On August 31, 2021, the Authority along with Bank of America Securities, as the senior managing underwriter, priced the $216,995,000 publicly issued tax-exempt Series 2021 bond financing on behalf of AtlantiCare Health System. The bonds were rated AA- by both Standard & Poor’s and Fitch Ratings.
The proceeds of the Series 2021 bonds will be used to: (1) refinance a taxable commercial bank loan taken by the Borrower, the proceeds of which were used by the Borrower to repay the Borrower’s debt to Geisinger Health and upon dissociation from Geisinger Health necessitated the refunding, repayment, and/or defeasance of the Borrower’s outstanding indebtedness of Geisinger Health (the “Loan Refinancing”), (2) reimburse the Borrower for the costs of planning, development, acquisition, construction, equipping, expansion, furnishing and renovation of all or a portion of one or more of the various capital projects of the Borrower and its affiliates, (3) fund a debt service reserve fund for the Series 2021 Bonds, if necessary, and (4) pay certain costs incurred in connection with the issuance and sale of the Series 2021 Bonds.
The transaction was structured with fixed rate serial bonds maturing from 2020 to 2039 and bi-furcated fixed rate term bonds maturing in 2046 and 2051.
The all-in total interest cost was 2.403%.
RWJBarnabas Health
On September 21, 2021, the Authority staff priced the $751,845,000 publicly issued tax-exempt Series 2021A bond financing on behalf of RWJ Barnabas Health. The bonds were rated AA- by Standard & Poor’s and Aa3 by Moody’s. Citigroup Global Markets was the senior managing underwriter,
The proceeds will be used to (1) finance and/or reimburse RWJB for the costs of planning, development, acquisition, construction, equipping, expansion, furnishing and renovation of one of more of the following capital projects: a) construction of a new 515,000 square foot, eleven story addition to the Rutgers Cancer Institute of New Jersey Pavilion (the “CINJ Pavilion”), b) purchase of land in New Brunswick, NJ, on which the CINJ Pavilion will be constructed, c) Renovation and upgrading of the kitchen at Clara Maas Medical Center, d) construction of new rooftop and renovations of the Emergency Department at Community Medical Center, e) multiple projects at Jersey City Medical Center including but not limited to renovations of the Emergency Department and Antenatal Testing Unit, f) acquisition of land and design of a cancer and ambulatory center at Monmouth Medical Center – Fort Monmouth campus, g) renovations of the HVAC system at Monmouth Medical Center – Southern Campus, h) renovation of the Emergency Department, catheterization lab, and kitchen at Newark Beth Israel Medical Center, i) multiple projects at Robert Wood Johnson University Hospital in New Brunswick including but not limited to renovations to the Surgical Suite, construction of a new ICU trauma unit, and structural deck repairs, j) expansion of the catheterization lab, same-day surgery at Robert Wood Johnson University Hospital Somerset Campus, k) renovations of the Emergency Department at Saint Barnabas Medical Center (2) acquire and install various items of capital equipment at one or more project locations; and (3) pay all or a portion of the costs of the issuance and sale of the tax-exempt obligations.
The transaction was structured with fixed rate serial bonds maturing from 2022 to 2045 and a tri-furcated fixed rate term bond maturing in 2051.
Yields on the Series 2021 serial bonds ranged from .06% for the 2022 maturity to 1.94% for the 2045 maturity. Yields for the fixed rate term bond are as follows: for the 2.625% coupon term bond maturing on July 1, 2051, a yield to call of 2.625%; for the 3.000% coupon term bond maturing on July 1, 2051, a yield to call of 2.40%; and for the 4.00% coupon term bond maturing on July 1, 2051, a yield to call of 2.04%.
The estimated savings generated from issuing tax-exempt bonds compared to taxable bonds was $9,247,290.
This transaction closed on September 30, 2021 with an all-in total interest cost of 2.7302%.
