Martha Jefferson Hospital finds bond buyers

Six weeks ago, financial backing for Martha Jefferson Hospital’s new facility looked bleak.

The economy had tanked, so in essence there was no credit market, said Jim Haden, president and chief operating officer of Martha Jefferson.

Across the country, projects have languished as local governments and institutions have had trouble finding buyers for bonds or setting up acceptable terms. Fluvanna County, for example, delayed financing a new high school after the county struggled to find a buyer for bonds.

It was “a little nerve racking,” Haden said of the borrowing landscape.

Last week, however, it all worked out, as BB&T and Wachovia successfully bid on $160.7 million in bonds. That amount, along with fundraising proceeds, will pay for the construction of a new 176-bed, 456,000-square-foot hospital, which will include a 58,000-square-foot cancer center.

Citing the inability to expand the downtown hospital, Martha Jefferson officials began planning for a new facility in 2000.

Construction has begun on the new structure, situated on 88 acres in Peter Jefferson Place, an office park off U.S. 250 on Pantops. Martha Jefferson’s outpatient center stands on adjacent property.

Martha Jefferson put the bonds out to bid last week. On Wednesday, $80 million was successfully bid on, and the following day the other half was closed on, Haden said.

“It didn’t take long at all,” he said, noting that hospital officials are happy to have a pair of banks providing financial backing.

“In this day and age, we thought it’d be good to have two banks,” he said.

Haden said he didn’t have the details on the bond terms, but added that “we are very happy” with them.

He believes the hospital’s prime financial rating was one reason the bidding on the bonds went so smoothly.

Moody’s Investors Services and Fitch Ratings recently gave the hospital “A” ratings, he said.

Steve Bowers, Martha Jefferson communications director, also was pleased with how the process played out.

“There were turbulent times, but we were very patient and went to the bond market at the right time,” he said. “It was a big step and a big step in the right direction.”

Haden also noted that the project is moving along smoothly. “It’s on schedule and on budget.”

The scheduled opening date for the new hospital is some time in 2012.