Press Release

For More Information Contact the NJHCFFA
Communications Department:
609-292-8585 X142

 

For Release: November 8, 2006

 

MARK E. HOPKINS
EXECUTIVE DIRECTOR

FOR IMMEDIATE RELEASE
CONTACT: Stephanie Bilovsky
PHONE: 609-292-8585
Date: November 8, 2006

 

SOUTH JERSEY HOSPITAL SAVES APPROX. $8.8 MILLION
THROUGH AUTHORITY REFINANCING

 

(Trenton) The New Jersey Health Care Facilities Financing Authority (the "Authority") closed a $144,285,000 transaction on behalf of South Jersey Hospital, which will save the hospital approximately $8.8 million through a refinancing. The proceeds, together with other funds, will be used to advance refund a portion of outstanding Authority bonds issued in 2002. The $8.8 million net present value savings represents 6.13% of the original debt service requirements.

 

The 2002 Authority bonds issued on behalf of South Jersey Hospital (the total amount issued was $171,580,000) helped to construct the SJH Regional Medical Center, a 262-bed acute care not-for-profit hospital in Cumberland County. The integrated medical campus, uniquely designed to enhance the delivery of responsive and efficient care, includes a four-story inpatient medical center in which each level represents a "Centers of Care" approach to inpatient care.

 

With a final maturity date of July 1, 2046, the 2006 bonds were rated "Baa1" by Moody's.  Secured, under a Master Trust Indenture note by a gross receipts pledge and mortgages on certain property of South Jersey, the tax-exempt bonds carry an all-in interest cost of 4.91%, while the 2002 bonds with the same rating carried an interest rate of 6.06%.

 

The Authority is the primary issuer of municipal bonds for New Jersey's health care organizations. 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's statutory powers were expanded in 1998 to include financing for all health care organizations or components thereof. 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.

 

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