NJHCFFA ISSUES $71,425,000 ON BEHALF OF CENTRASTATE MEDICAL CENTER

(Trenton)  Today, the New Jersey Health Care Facilities Financing Authority (the "Authority") closed a $71,425,000 transaction on behalf of CentraState Medical Center. The proceeds will finance an ambulatory care center, comprised of a three-story outpatient facility, including various Medical Center programs, independent physician offices, an independent pharmacy, a health awareness center and a medical fitness facility.  The construction for the project is expected to take approximately two years.  Upon completion, the CentraState plans to move some outpatient services to the new ambulatory campus including: rehabilitation, centers for wound care, multiple sclerosis, pain management, cardiac rehab and diagnostics.

 Insured by Assured Guaranty Corporation, the bonds received an "Aa1" rating from Moody's Investors Service and an "AAA" rating by Fitch Ratings.  The bonds were issued in two series. Series 2006A, in the amount of $41,575,000, is tax-exempt, while the Series 2006B bonds in the amount of $29,850,000 are taxable in order to fund the portion of the ambulatory that will house for-profit activities. 

The first series, structured as fixed rate bonds, received an all-in true interest cost of 4.74%. The second series used an auction rate format initially set with a 7-day auction period. This was the Authority's first auction bond transaction using Assured Guaranty as the insurer, and it was also the Authority's first taxable auction rate issue.  The Series 2006B bonds received an initial rate of 5.15%, which is low considering the bonds are taxable. 

Proceeds will also be used to refinance an existing commercial loan and finance routine capital expenditures for the years 2006 through 2009.  

CentraState Medical Center is a 263-licensed bed facility in Freehold that provides health care services primarily to the residents of Monmouth County and portions of Ocean County.   The center provides a broad range of adult, pediatric, newborn acute care and psychiatric services, as well as numerous outpatient, ambulatory and emergency care services.

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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