Press Release

For More Information Contact the NJHCFFA
Communications Department:
609-292-8585 X142
For Release: May 15, 2009



CONTACT: Stephanie Bilovsky
PHONE: 609-292-8585
Date: May 15, 2009


(Trenton) Yesterday, the New Jersey Health Care Facilities Financing Authority (the "NJHCFFA") successfully completed a $564,645,000 bond transaction on behalf of Virtua Health, a non-profit multi-hospital health care system headquartered in Marlton, New Jersey. The proceeds of the issuance, which represents the NJHCFFA's largest financing project to date, will be used to construct and equip the new roughly 368-bed hospital to replace Vitrua's current Voorhees facility.

The bonds were issued in several Series to allow for the inclusion of various security providers and allow for flexibility to respond to various market changes. $379,645,000, the largest portion of the financing (referred to as Series A), was issued as fixed rate securities insured by Assured Guaranty. These bonds have a final maturity date of July 1, 2038 and the fixed rate issue in total had an all-in true interest cost of 5.82%.

The remaining $185,000 bonds were issued as variable rate securities with two series (Series B & C) resetting their rates on a daily basis and two series (Series D & E) with rates that reset weekly. The daily variable rate bonds are supported by a JP Morgan Chase Bank letter of credit and were initially priced at an interest rate of 0.15%. The weekly variable rate bonds are backed by a TD Bank letter of credit and they were priced at an interest rate of just .30% for the period May 14th through May 20th. The final maturity date of the variable rate portion of the debt is 2043.

At the NJHCFFA public meeting, Bob Segin, Virtua's Chief Financial Officer/Senior Vice President for Finance, noted that the seeds of this project were planted back in December 7, 2002 when a strategic meeting determined the need to build a new facility in Voorhees. Since then, Virtua worked through numerous facility redesigns, permit approval processes, banker changes, and then a virtually frozen bond market as the nation's financial system bucked at the 2008 economic downturn. He stated that Virtua was grateful to finally see  all of the hard work come through to a successful financing helping to provide a new facility for Voorhees and the surrounding communities.

Lou George, NJHCFFA Project Manager for the financing stated that, "We are pleased to have been able to help Virtua get access to this low-cost capital, especially on such a grand scale and in these fluctuating economic times."

Additional information on the hospital project can be found at For additional information on the financing, contact Stephanie Bilovsky, NJHCFFA Communications Specialist, as noted above.

Virtua Health is a non-profit multi-hospital healthcare system headquartered in Marlton, New Jersey, consisting of four hospitals: Virtua Memorial Hospital Burlington County and Virtua West Jersey Hospitals in Berlin, Marlton and Voorhees. Virtua also provides services from a comprehensive outpatient health center in Camden; outpatient surgery centers in Mt. Holly and Voorhees; a home care service, rehabilitation and nursing centers in Mt. Holly and in Berlin, and the William G. Rohrer Center for HealthFitness in Voorhees.

The NJHCFFA 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 NJHCFFA has issued over $15 billion in bonds on behalf of over 140 health care organizations throughout the state.