The Connecticut Children’s Medical Center is a 123 licensed bed pediatric hospital in Hartford. It is the only hospital in Connecticut devoted exclusively to children, and in 1996 consolidated programs previously provided by Hartford Hospital, John Dempsey Hospital and Newington Children’s Hospital. The Hospital’s market share in the state of Connecticut is estimated at 26% of all pediatric admissions and 35% of all pediatric patient days.

Project:  Bond proceeds were used to refinance the $44 million remaining of the $53.75 million Newington Children’s Hospital Issue, Series A, issued in 1994. Proceeds from the Series A Bonds were used to construct the Connecticut Children’s Medical Center in Hartford, which opened April 2, 1996.

Structure:  $21,200,000 Issue, Series B was issued with a fixed rate and an eighteen-year term. Series C was structured as a variable rate issue of $22.2 million with a 28-day auction-rate (multi-modal variable rate). Both Series B and C were insured by MBIA.

Closing Date:  May 13, 2004.

Results:  Due to market volatility, only $1.5 million of Series B bonds were sold to retail investors. As a result, the 2005 through 2007 and the 2009 through 2010 maturities were split to have separate coupons targeted to retail and institutional investors. The 2005 and 2021 maturities were oversubscribed, allowing for a yield reduction of two basis points on each of those maturities. The spreads to the MMD triple-A scale ranged from 20 to 24 basis points. There were a number of institutional investors for the bonds. The variable rate Series C bonds were priced on a separate date, and the initial interest rate was set at 1.15%, eight basis points higher than the BMA Index. Three corporate investors purchased the bonds.

Financing Team:  Advest, Inc.; Carmody & Torrance LLP; Hawkins Delafield & Wood LLP; MBIA Insurance Corporation; Murtha Cullina LLP; Public Financial Management; Robinson & Cole LLP; U.S. Bank, N.A.