Prudential Securities said its recent sale of $19 million in healthcare receivables-backed notes is among the first such financings for a single healthcare system.
The New York-based investment banking firm raised the funding through a private placement of medium-term notes backed by the healthcare receivables of Jersey City (N.J.) Medical Center and its Jersey City affiliate, Greenville Hospital. LHS Receivables Corp. issued the notes; Standard & Poor's rated them A.
Prudential Securities said it's the first healthcare receivables securitization with an interest rate based on the London Interbank Offered Rate. LIBOR is the short-term interest rate that the most credit-worthy international banks dealing in Eurodollars charge for loans.
Sunasir Sen, a director in Prudential Securities' mortgage and asset-backed capital division, said this deal opens up the medium-term notes market for single hospital systems.