Press Release

For More Information Contact the NJHCFFA
Communications Department:
609-292-8585 X142
For Release: December 12, 2009

CONTACT: Stephanie Zschunke
PHONE: 609-292-8585
Date: December 12, 2009


(Trenton) Yesterday, the New Jersey Health Care Facilities Financing Authority (the “Authority”) closed a $12,765,000 transaction on behalf of Hunterdon Medical Center. The proceeds will be used to refund approximately $8 million worth of bonds issued through the Authority in 1990. Hunterdon will also use the proceeds to finance capital budget items including information technology for both the hospital’s main campus in Flemington and the health and wellness facility located in Clinton.

The bonds, which fit the criteria for bank-qualification, were privately placed with TD Bank, N.A. The bonds were initially priced at sixty-nine percent of the sum of Thirty-Day LIBOR plus two hundred eighty basis points. Concurrent with the closing of the transaction, Hunterdon entered into a fixed rate swap, resulting in a rate of 4.107% for the entire life of the bonds. The final maturity date of the bonds is July 1, 2036.

Hunterdon Medical Center is a 178-bed non-profit community hospital, providing a full range of preventive, diagnostic and therapeutic inpatient and outpatient hospital and community health services. These include: a regional cancer center (a Fox Chase Cancer Center affiliate), a regional breast care program, diagnostic imaging services, a maternity and newborn care center, an array of cardiac care services, a sleep disorders center, a diabetes health center, behavioral health services, a health and wellness center and a home health agency.

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