Backus is a short-term, not-for-profit, acute care hospital located in Norwich and is the only state designated trauma center in eastern Connecticut. The Hospital is licensed for 213 beds and 20 bassinets and currently staffs 163 beds. Backus provides a comprehensive array of vital healthcare services including: cancer services, including radiation therapy; cardiac care, including diagnostic catheterization; diabetes management, including wound care with hyperbaric oxygen therapy; and outpatient surgery.

Project:  Series F proceeds provided financing for construction and renovation projects for medical-surgical inpatient units, emergency services, and surgical services for inpatient and outpatients, as well as the acquisition of a new linear accelerator. Series G bond funds financed some of the project costs for Series F and advance refunded the Hospital’s outstanding 1997 Series D issue.

Structure:  $30,100,000 Issue Series F was structured as a variable rate issue. $28,035,000 Series G was issued as a fixed rate transaction.

Closing Date:  August 10, 2005.

Results:  Sales of the Series F bonds generated significant investor interest, with all bonds being sold to retail buyers. The true interest cost of the Series F transaction was 3.719%. The Series G bonds were oversubscribed by three times and resulted in a true interest cost of 4.65% for the transaction.

Financing Team:  Advest, Inc.; Bank of America; Carmody & Torrance LLP; Financial Security Assurance, Inc.; Hawkins, Delafield & Wood LLP; Public Financial Management; Sidley Austin Brown & Wood, LLP; UBS Financial Services; U.S. Bank, N.A.; Wiggin and Dana LLP.