Press Release


For More Information Contact the NJHCFFA
Communications Department:
609-292-8585 X120
For Release: May 18, 2007

CONTACT: Stephanie Bilovsky
PHONE: 609-292-8585
Date: May 18, 2007




(Trenton)  Yesterday, the New Jersey Health Care Facilities Financing Authority (the "Authority") successfully closed a $130,400,000 transaction on behalf of Trinitas Hospital, issued in two series. 


The Series 2007A bonds were tax-exempt and amounted to $65,050,000.  The proceeds of this series will be used to effect a current refunding of the former St. Elizabeth Hospital's Series 1997 Bonds together with the Trinitas Series 2000 bonds presented for tender. It should be noted that the tender offer for the Trinitas Series 2000 bonds was conducted by the hospital and that the Authority was not a party to the tender offer. 


The Series 2007B bonds were taxable bonds convertible to tax-exempt, totaling $65,350,000.  As long as Trinitas remains a tax-exempt entity, and as long as there are no significant changes to the tax laws that disallow the proposed conversion, the taxable Series 2007B bonds will convert to tax exempt status on April 2, 2010.  The proceeds of this series will be used to defease all or a portion of the remaining un-tendered Trinitas Series 2000 bonds. 


The bonds were issued under the hospital's rating of "BBB-" from Standard & Poor's and "Baa3" from Moody's Investors Service.  Current market assumptions at the time of the Authority's approval of the bond sale predicted a present value savings of approximately $9.8 million for the hospital, which accounts for 7.7% of the refunded bonds.   


Series 2007A closed with an all-in true interest cost of 5.11% while Series 2007B closed with an all-in true interest cost of 5.88%, assuming the conversion to tax-exempt status on or around April 2, 2010.


Trinitas Hospital was formed in 2000 by the consolidation of the Elizabeth General Medical Center and the St. Elizabeth Hospital. Using the two sites, Trinitas provides services to the City of Elizabeth and surrounding communities in Union, Essex and Middlesex Counties. With 389 licensed general acute care beds and 142 long-term care beds, Trinitas provides a wide array of services, covering the full spectrum of inpatient and outpatient care, ancillary services and long-term care.


The Authority, the primary issuer of municipal bonds for New Jersey's health care organizations, was created in 1972 by an act of the Legislature to provide not-for-profit health care providers with access to low-cost capital. 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.