Press Release

For More Information Contact the NJHCFFA
Communications Department:
609-292-8585 X142
For Release: August 13, 2008



CONTACT: Stephanie Bilovsky
PHONE: 609-292-8585
Date: August 13, 2008




(Trenton)  Today, the New Jersey Health Care Facilities Financing Authority (the "Authority") successfully closed on $248,910,000 in bonds on behalf of St. Joseph's Healthcare System ("St. Joseph's"). The proceeds of the bonds will be used at the St. Joseph's Patterson facility to:


  • construct and equip a 4-story building, including an emergency department, twelve operating rooms, a sterile services facility, two critical care units and a helicopter landing pad,
  • create a new lobby and other ground floor improvements,
  • renovate a portion of the facility to be used for pediatric and adult clinical services, and
  • various other renovations and equipment acquisitions.


 Proceeds will be used at St. Joseph's Wayne facility to:

  • renovate, expand and equip two of its operating rooms, and
  • renovate and equip the intensive care, critical care, and various other units at the hospital.


Proceeds were also used to refund outstanding Authority bonds (Series 1996 A and Composite Program Series 2003 A-6 bonds), as well as a loan from Valley National Bank issued in connection with the acquisition of the Wayne facility. 


Even though the financial position of St. Joseph's has improved over the last few years, the rating agencies remained cautious, with Moody's and Standard & Poor's rating the bonds "Ba1" and "BBB-", respectively. Having one rating that was non-investment grade, and a healthcare interest rate market that is extremely volatile and saturated with refinancings from the auction rate situation, yielded a higher than typical interest rate (an all-in true interest cost of 7.21%) for Authority bonds.  The Authority is nevertheless pleased to be able to provide St. Joseph's with access to necessary capital at a reasonable cost to help St. Joseph's achieve its strategic vision.


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.