For More Information Contact the NJHCFFA |
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MARK E. HOPKINS EXECUTIVE DIRECTOR |
CONTACT: Stephanie Bilovsky |
$62,000,000 ISSUED ON BEHALF OF UNDERWOOD-MEMORIAL HOSPITAL TO RESTRUCTURE AUCTION RATE DEBT
(Trenton) Today, the New Jersey Health Care Facilities Financing Authority (the "Authority") successfully closed on $62,000,000 in bonds on behalf of Underwood-Memorial Hospital ("Underwood") in order to refund its auction rate debt.
In January of 2004, the Underwood issued approximately $65 million of variable auction rate certificates. Due to the recent collapse of the auction rate market, Underwood returned to the Authority to refund these bonds through variable rate demand bonds backed by a direct pay letter of credit from UBS AG.
The Bonds initially bear interest at the weekly interest rate but the documents allow for conversion to other interest rate modes including daily rates, short-term rates, long-term rates, fixed rates or auction rates securities to provide Underwood with more flexibility to respond to changes in the market. The initial weekly variable interest rate the transaction was 1.50%.
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 35-year history, the Authority has issued over $13 billion in bonds on behalf of over 140 health care organizations throughout the state.
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