The Brooklyn Hospital Center Secures New Credit Facility, Reduces Debt By $25 Million Significant Milestone is Last Major Hurdle from Plan of Reorganization, Permits Hospital to Pursue Investments in Infrastructure and Capital Initiatives
BROOKLYN, N.Y., Jan. 14, 2013 /PRNewswire/ -- In two separate transactions, The Brooklyn Hospital Center has restructured and refinanced $80 million of debt, reducing its debt by $25 million and saving nearly $10 million in interest. The transactions, which eliminated the last major hurdle remaining from The Brooklyn Hospital Center's 2007 Plan of Reorganization, leaves the hospital's balance sheet significantly stronger permitting it to pursue investments in infrastructure and other capital initiatives.
The announcement was made by Joseph Guarracino, the hospital's senior vice president and CFO, who said the two-stage strategy began with the refinancing of the hospital's $45 million balloon debt, which was due in October 2012. This permitted the hospital to refinance its $35 million HUD-insured mortgage, resulting in savings of nearly $10 million over the life of the loan.
"This was the last hurdle in The Brooklyn Hospital Center's Plan of Reorganization," says Mr. Guarracino. "This major milestone for the hospital leaves our balance sheet stronger and positions us favourably with other lenders."
Brooklyn Hospital Center:
Founded as the borough's first voluntary hospital, The Brooklyn Hospital Center (TBHC) has been keeping Brooklyn healthy since 1845. Today, it is a 464-bed teaching hospital, offering primary and specialized medical care, sophisticated diagnostic and therapeutic services, cutting-edge technology, and specialized surgery to nearly 300,000 patients annually. Located in the heart of Brooklyn's downtown revitalization district, TBHC is a member of the New York-Presbyterian Healthcare System and the Brooklyn academic and clinical affiliate of Weill Medical College of Cornell University. TBHC has fully accredited, independent residency programs in Emergency Medicine, Internal Medicine, General Surgery, Obstetrics and Gynecology, Pediatrics, Family Medicine, General Dentistry and Oral and Maxillofacial Surgery, and trains more than 250 physicians each year. For more information, visit www.tbh.org
SOURCE Brooklyn Hospital Center