Middletown – Orange Regional Medical Center officials have announced that they have closed on $261 million in tax-exempt bonds to help fund their new hospital construction project. The
Dormitory Authority of the State of New York issued the bonds which carry an average interest rate of 6.33%. The senior underwriter for the bonds was Merrill Lynch & Co. JP Morgan and Morgan Stanley participated as members of the underwriting group.
Orange Regional’s new 600,000 square foot hospital will be conveniently located between the two existing hospitals at 707 East Main Street in the Town of Wallkill and will feature 354 private rooms in an efficient, state-of-the-art facility. Once completed in 2011, the new hospital will replace Orange Regional’s existing facilities in Goshen and Middletown .
Orange Regional Medical Center Chief Financial Officer Mitch Amado said, “Approximately 77% of the project costs are being funded through the issuance of these tax exempt bonds that can be repaid from the hospital's annual operations.” Amado continued, “The balance of the new hospital construction costs will be funded from several sources including monies we currently have in the bank, philanthropy, state grants and proceeds from the sale of Orange Regional’s two existing campuses in Goshen and Middletown .” The hospital has finalized the sale of Arden Hill and Horton campuses through a sale/lease back transaction with the Community Foundation of Orange and Sullivan Counties for $10 million. The new hospital project has also been supported by the New York State Berger Commission which has recommended restructuring of hospital systems. Orange Regional has been awarded HEAL NY grant funding through New York State totaling $48.6 million to assist with project funding. Another key component to the new hospital financing will be the public phase of a capital campaign which will launch this summer.
