Project:  The Series B issue funded a three-phase project totaling $26.8 million at Rockville Hospital to expand and renovate the facility. Phase I included new construction and renovations for the Emercency Department, a new MRI dock, relocation of the endoscopy department and GI laboratory, infrastructure upgrades, development of an outpatient interchange area, and renovation and expansion of the rehab services department.

Phase II involved the expansion of the sterile processing area, relocation of lab space, relocation of cardio-pulmonary and pre-admission testing areas, development of a 16 bed step-down unit, and completion of the outpatient interchange area.

Phase III involved the development of a new main entrance, exterior drive, lobby and atrium; consolidation and centralization of the outpatient registration area; relocation and expansion of the gift shop; upgrade of the parking lot; renovation of the Emergency Department administrative support area; main entrance site work; and renovation of nursing core and support spaces on one of the main patient care floors.

Structure:  $20,000,000 Issue, Series B was issued with a variable rate structure, with a weekly interest rate reset. The bonds were supported by a letter of credit from Sovereign Bank, and a confirming letter of credit from Comerica Bank.

Closing Date:  August 21, 2004.

Results:  The initial variable interest rate was 1.02%. The bonds were sold to three institutional investors.

Financing Team:  Advest, Inc.; Murtha Cullina LLP; P.G. Corbin Group, Inc.; Pullman & Comley LLC; Robinson & Cole LLP; Shipman & Goodwin LLP; Sovereign Bank; U.S. Bank, N.A.