St. Joseph Health (NJ)

CUSIP: 645790CB0

NAME: St. Josephs Healthcare System Obligated Group (NJ)

COUPON: 4.00%

MATURITY: 7/1/2048

BONDHOLDER SECURITY: a gross revenue pledge and mortgage from the obligated group (all corporations except the parent, captive insurance company, and 200 Hospital Plaza, which issued debt to build a parking garage on campus), secure the bonds. SJHS comprises 98% of the revenues of the System and 92% of its assets.

USE OF BOND PROCEEDS: series 2016 bonds are expected to be fixed rate bonds and are being issued to advance refund the series 2008 bonds and add an additional $50 million of debt. Management notes that $40 million will go back to the balance sheet as reimbursement for prior expenditures.

RATINGS: Baa3 (Moody’s)/BBB- (S&P) (Note: S&P revised its Credit Outlook from Stable to Positive November 2015.

OBLIGOR PROFILE: SJHS operates two acute-care hospitals: the 534-staffed-bed (651-licensed bed) SJRMC and Children's Hospital in Paterson, NJ and the 142-staffed-bed (229-licensed bed) St. Joseph's Wayne Hospital, approximately seven miles away in Wayne. In addition, the system also includes two foundations, a home health agency, a captive insurance company, and a 151-bed long-term care provider. SJHS is a leading provider of charity care in the state of NJ (“safety net provider”) with a leading market share in its service area, in addition to a Medicaid percentage of revenues of 37%. SJHS is also a leader in medical education in NJ. A major academic center, it is affiliated with New York Medical College and Seton Hall University providing Residency Training for 240 grad physicians in 11 fully accredited programs.  The System’s service area is comprised of 34 municipalities located in Passaic, northern Essex, southern Bergen and eastern Morris Counties. Primary service area market share: 54%. 2015 Days cash on hand was 135 and max annual debt service coverage was 3.40x.

(Source: Official Statement dated August 17, 2016)


Although this information is obtained from sources believed to be reliable, we cannot guarantee its completeness or accuracy.  For complete information regarding these bonds, please review the Official Statement, which can be provided upon request.  Investing in bonds involves risk including possible loss of principal.  Income may be subject to state, local, or federal alternative minimum tax.  Offerings are subject to prior sale and market conditions.  Bonds are subject to availability and price fluctuations.  As with any investment, market values may fluctuate during the period the bonds are held.  For specific yield and suitability of this offering, please contact your R. Seelaus & Co. Financial Advisor at 1-800-922-0584. Securities are offered through R. Seelaus & Co. 25 Deforest Ave. Suite 304, Summit, NJ 07901 Member FINRA/SIPC