Press Release


For More Information Contact the NJHCFFA
Communications Department:
609-292-8585 X142
For Release: November 22, 2006

CONTACT: Stephanie Bilovsky
PHONE: 609-292-8585
Date: November 22, 2006




(Trenton)  Today, the New Jersey Health Care Facilities Financing Authority (the "Authority") successfully closed a $82,870,000 transaction on behalf of fine borrowers through its Variable Rate Composite Program. 

  • AtlantiCare Regional Medical Center will receive $25 million in bond proceeds to finance expansion and renovation project at the Medical Center's City Division, including the construction of a new 7-story addition and renovations to the existing hospital space, construction of a bridge connecting the Hospital to Bally's garage, and the purchase of hospital equipment.
  • East Orange General Hospital will use its $13.2 million worth of bond proceeds to upgrade and expand the emergency department and other hospital related facilities, finance the acquisition and installation of capital equipment, fund capitalized interest and start-up costs, and refund bonds issued through the Authority in 1990.
  • Meridian Nursing and Rehabilitation, Inc. will use its $5.1 million worth of bond proceeds to complete the construction of a two-story skilled nursing facility in Wall Township, repay certain funds advanced to pay costs incurred in connection with the new facility, and fund working capital. 
  • MHAC 1, LLC, a company formed to provide services benefiting Meridian Health System, will use its $32,570,000 worth of bond proceeds to construct a five-story parking garage, related power plant and helipad, all located in the Jersey Shore University Medical Center's vicinity, and to fund incidental equipment.
  • FitnessFirst, L.L.C. will use its $7 million worth of bond proceeds for the development of a medically based health and fitness center affiliated with Holy Name Hospital, and to fund an upfront lease payment by the LLC pursuant to the lease.

The Authority's Variable Rate Composite Program or "COMP Program" enables qualified health care borrowers to access the tax-exempt and/or taxable capital markets at variable interest rates with shared issuance costs. Documents are standardized and bonds can be marketed for more than one borrower at a time, reducing costs of issuance for access to the capital markets. This latest round of COMP issues was the Authority's seventh tranche of the program. 


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.