Investor Information
Analyst Communications/PresentationsStatement
Statement on FSA's Exposure to Bayonne Medical Center
April 18, 2007
Bayonne Medical Center filed for bankruptcy on April 16, 2007 and therefore is in default under the FSA loan agreements. FSA insures two series of bonds for the Bayonne Medical Center - Series 1994 and 1998. FSA's total gross and net par exposure to this issuer was $34.2 million and $23.1 million, respectively, on March 31, 2007. FSA is secured under the Master Trust Indenture by Gross Receipts. The most recent debt service payments were made as scheduled, by the hospital, to holders of the FSA-insured bonds on January 1, 2007. The 1994 and 1998 transactions have funded debt service reserve accounts, in accordance with the Master Trust Indenture, totalling $4.7 million.
The next debt service payments are due to bondholders on July 1, 2007. Debt service due through January 1, 2008 is $2.2 million net and $3.4 million gross.