Hackensack University Medical Center pencils in pricing of $85 million revenue bonds for March 1

By Sheri Kasprzak

New York, Feb. 11 - The New Jersey Health Care Facilities Finance Authority plans to price $85 million in series 2008 revenue bonds on behalf of Hackensack University Medical Center on March 1, a source familiar with the deal said Monday afternoon.

The timing is tentative and subject to change, the source added.

On Monday, Moody's Investors Service rated the bonds A3 with a negative outlook and Fitch rated the bonds A- earlier this month.

Assured Guaranty is expected to be the bond insurer.

The offering is negotiated with Bear, Stearns & Co. as the lead manager.

Proceeds from the deal will be used to construct a new cancer center and a 975-space parking garage.

Moody's gave the bonds a negative outlook, basing its decision on the impact of additional debt on "an already leveraged balance sheet that is light on cash for an organization of this size and has outstanding lease obligations and significant un-funded pension liability that further reduce total debt coverage despite its improving operational profile."

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