Press Release


For More Information Contact the NJHCFFA
Communications Department:
609-292-8585 X120
For Release: May 4, 2007

CONTACT: Stephanie Bilovsky
PHONE: 609-292-8585
Date: May 3, 2007




(Trenton)  Yesterday, the New Jersey Health Care Facilities Financing Authority (the "Authority") successfully closed a $101,000,000 transaction on behalf of Atlantic Health System ("AHS").  The proceeds of the financing will be used to effect a current refunding of Series 1997A Bonds, and to provide funds for renovations and capital expenditures at AHS' Morristown, Overlook, and Corporate locations. 


More specifically, in addition to helping AHS replace a roof at the Overlook division, the proceeds will be used more extensively at the Morristown facility, where they will help to relocate the neonatal intensive care unit; renovate and expand the obstetrics, emergency room and nursing units; renovate a parking garage; and, replace patient beds as well as patient care bays in the post-anesthesia care unit.  Proceeds will also fund the acquisition of furniture and equipment for various AHS sites.


The bonds were insured by Ambac Assurance Corporation, resulting in ratings of "AAA" from both Moody's and S&P, and they were issued in two equal lots of auction rate securities, managed by Goldman Sachs.  Lot A's bonds will be reset every business day and have a final maturity date of July 1, 2023, and Lot B's bonds will reset weekly and have a final maturity of July 1, 2036.  The issue's multi-modal form provides AHS with some flexibility to react to changes in the interest rate market.   Both of the lots received an initial interest rate of 3.60%.


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 is the primary issuer of municipal bonds for New Jersey's health care organizations. 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.