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KIDDER, PEABODY STRUCTURES FIRST BOND ISSUE FOR LOWER BUCKS HOSPITAL

 PHILADELPHIA, Jan. 6 /PRNewswire/ -- When Lower Bucks Hospital officials decided to make their maiden voyage in the capital debt market, they called on Kidder, Peabody & Company to pilot the ship.
 Lower Bucks Hospital is a well-regarded local acute care hospital with an outstanding reputation for excellent doctors and superior nursing care. Located in Bristol, it serves the southern portion of Bucks County, Pa.
 Officials at the not-for-profit community hospital recognized that the aging, 37-year-old facility which houses 219 beds, would need major capital improvements if it was to continue to fulfill its mission. This meant doing something the hospital had never done before: borrowing a huge sum of money to finance the improvements.
 The hospital brought in Kidder, Peabody to serve as senior managing underwriter. Kidder, Peabody structured and brought to market a $36 million tax-exempt bond issue, rated "Baa" by Moody's, which will enable the hospital to build a four-story, 130,000 square foot new building and to revamp most of the existing facility.
 The construction also involves redesigning the layout of the facility and moving certain treatment and administrative areas to make the hospital more efficient.
 By borrowing in the current low interest rate climate, the hospital was able to finance its improvement projects at very favorable interest rates: the 30-year bonds sold at a yield of 7.45 percent and the 20-year bonds at 7.35 percent.
 With financing completed and a guaranteed maximum contract bid accepted, construction has begun. The hospital staff are maintaining the level of operations while the work goes on around them.
 The first construction phase includes putting in new energy efficient windows, a new front, new entrance, and access ramps on the existing building. The schedule calls for work to be completed by the end of 1995.
 -0- 1/6/93
 /CONTACT: Tom Kilkenny of The Marcus Group, 201-902-9000, for Kidder, Peabody & Co./


CO: Kidder, Peabody & Co.; Lower Bucks Hospital ST: Pennsylvania IN: HEA SU:

SH-TS -- NY044 -- 2275 01/06/93 15:02 EST
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Publication:PR Newswire
Date:Jan 6, 1993
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