The Hospital is a 511 licensed bed (including bassinets) short-term, not-for-profit, acute care, Catholic hospital located in New Haven, Connecticut. The Hospital staffs approximately 474 beds, including bassinets. The average daily census averages 360, including newborns. The Hospital’s primary service area is comprised of the City of New Haven and four surrounding towns: East Haven, West Haven, Hamden, and North Haven. The secondary service area includes 17 surrounding towns. The total service area has a population of approximately 287,000.

Project:  Bond proceeds from the Series L portion of this transaction refinanced the Hospital’s Series D, Series E, Series G, and Series I issues with approximately $27.7 million outstanding. The refinancing of these four outstanding issues at the then current market rates provided significant net present value savings, extended maturities on the bonds by ten years, and lowered the Hospital’s maximum annual principal payment and debt service requirements.  The 1990 Series D&E bonds provided funds for construction and renovation projects, including two five-story additions to the hospital, and a patient care information system.  Bond proceeds from the 1992 Series G bonds financed the construction of a community cancer center.  Series I, which was issued in 1993, funded various capital projects at the Hospital. 

Series M proceeds provided for refinancing of the Hospital’s Series J and K issues, with $25.1 million outstanding, extending maturities, and lowered and extended annual principal payment requirements. Bond proceeds also financed renovation and expansion costs of the St. Regis Health Center in New Haven.  Proceeds from the 1997 Series J& K bonds funded the construction of an ambulatory/surgical facility and pay a portion of the purchase price of a medical office building for hospital services.

Structure:  $29,525,000 Issue, Series L was structured as a “synthetic fixed-rate” bond issue, which means an auction rate, variable rate bond issue with an interest rate swap through final maturity. The transaction will have a variable to fixed interest rate swap to maturity. Both the bonds and the swap were insured by AMBAC.

$30,420,200 Issue, Series M was structured as a variable rate transaction, in a weekly floating interest rate reset. This issue was supported by a five-year letter of credit from KBC Bank.

Closing Date:  December 16, 2004.

Results:  The initial weekly auction interest rate on the Series L bonds was 1.25% and sold entirely to retail investors. The Series M initial weekly variable interest rate was 1.63%, and sold to four money market funds, eight retail investors, with a remainder of the bonds purchased by the underwriter. In total, the net present value savings of $3.8 million equaled 7.2% of the refunded bonds.

Financing Team:  Ambac Assurance Corporation; Hawkins, Delafield & Wood LLP; KBC Bank NV; Public Financial Management; Shipman & Goodwin LLP; UBS Financial Services; Wiggin & Dana; Winston & Strawn LLP.