Press Release

For More Information Contact the NJHCFFA
Communications Department:
609-292-8585 X142
For Release: October 5, 2009

CONTACT: Stephanie Zschunke
PHONE: 609-292-8585
Date: October 5, 2009


(Trenton)  On October 1, 2009, the New Jersey Health Care Facilities Financing Authority (the "Authority") successfully closed on $16,340,000 in bonds on behalf of Kennedy Health Facilities, Inc. The proceeds of the bonds will finance the construction and equipping of a 60-bed sub-acute nursing unit at Kennedy's skilled nursing facility in Sewell.  Proceeds were also used to refinance the acquisition of licensing rights for 50 sub-acute beds to be placed in this nursing unit.

With a final maturity date of October 1, 2039, the transaction was structured as an unrated thirty-year private placement that has a twenty-four month interest only period with principal being amortized over the subsequent twenty-eight years.  

Privately placed with TD Bank, the bonds are secured by first mortgage lien on the Kennedy Health Care Center located in Washington Township and by a first priority security interest on all business assets of Kennedy Health Facilities, Inc.

Because these are bank qualified bonds, TD Bank can deduct their carrying costs, which allowed for Kennedy to negotiate a more favorable interest rate.  The bonds were issued in a variable rate format with an initial floating rate of 2.59%.

Kennedy Health Facilities, Inc. d/b/a Kennedy Health Care Center, a not-for-profit, wholly-controlled subsidiary of Kennedy Health System, Inc., is a 130-bed skilled nursing facility located on the Washington Township Kennedy Memorial Hospitals campus.  Certified by Medicare and Medicaid, the Center provides both long-term residential care and inpatient sub-acute rehabilitation. 

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. Since inception, the Authority has issued over $16 billion in bonds on behalf of over 150 health care organizations throughout the state.