Jefferson Parish Hospital Service District No. 2


CUSIP *****
  • Issue Currency: *****
  • Announcement Date: 17-Aug-2018
  • News: UMB Bank, National Association (the Trustee) serves as successor Master Trustee under the General Hospital Revenue Bond Trust Indenture, dated as of October 1, 2011 (the General Indenture) by and between Jefferson Parish Hospital Service District No. 2, Parish of Jefferson, State of Louisiana, as issuer, (the District) and the prior master trustee and as successor Bond Trustee under the First Supplemental Trust Indenture, dated as of October 1, 2011 (the Bond Indenture) by and between the District and the prior bond trustee. The Bonds named above (the Bonds) were issued pursuant to and are governed by the General Indenture and the Bond Indenture. Capitalized terms not otherwise defined herein have the meanings given to them in the General Indenture or the Bond Indenture, as applicable. Events of Default On June 29, 2018 the District published its audited financial statements for the year ended December 31, 2017 (the Audited Financials) with the Municipal Securities Rulemaking Boards Electronic Municipal Market Access (EMMA) system. 2 The Audited Financials state, and otherwise acknowledge, that the Restricted Groups debt service coverage ratio for the year ended December 31, 2017 is less than 1.0. 3 Section 623 of the General Indenture provides, in relevant part, that If Net Income Available for Debt Service is less than 100% of the maximum Annual Debt Service Requirements of the 1 No representation is made as to the correctness of CUSIP numbers, which are included solely for the convenience of the holders of the Bonds. 2 Available to download from EMMA at https://emma.msrb.org/ES1176021-ES919302-ES1320417.pdf 3 See Audited Financials at p. 38. Jefferson Hospital Service District No. 2, Jefferson Parish, Louisiana (East Jefferson General Hospital) Revenue and Refunding Bonds, Series 2011 August 17, 2018 Page 2 of 3 UMB Bank, National Association Restricted Group for any Fiscal Year it shall be an Event of Default [under the General Indenture]. Section 701 of the General Indenture provides further that an Event of Default shall have occurred if default shall be made by the District in the performance or observance of the covenants, agreements and conditions on its part provided in Section 623 [among others]. Accordingly, an Event of Default has occurred under the General Indenture. Further, pursuant to Section 6.02 of the Bond Indenture, [t]he occurrence of an Event of Default pursuant to Section 701 of Article VII of the General Bond Indenture shall constitute. . . an Event of Default with respect to the Series 2011 Bonds. Therefore, an Event of Default has also occurred under the Bond Indenture. On August 8, 2018 the trustee delivered a Notice of Events of Default to East Jefferson General Hospital based upon the foregoing. The Events of Default described in this Notice are continuing and have not been waived or cured. Status of Strategic Partnership The District has previously made voluntary disclosures on EMMA concerning the exploration of a strategic partnership with Hospital Corporation of America (HCA).4 The Trustee is aware of articles that have appeared in the local press reporting that discussions between the District and HCA have ended. The Trustee, through its counsel, is seeking to arrange a public investor call with the Districts management to discuss, inter alia, the status of the operations and strategic plans of the District. Further information concerning a public investor call and/or additional information concerning the status of the District will be posted to EMMA as available and appropriate. Further Information The Trustee has retained the law firm of Mintz Levin Cohn Ferris Glovsky and Popeo PC, and specifically Daniel Bleck and Aaron Williams of that firm to represent it in connection with the general matters described in this Notice. Mr. Blecks phone number is (617) 348-4498 and his email address is dsbleck@mintz.com. Mr. Williams phone number is (617) 348-4964 and his email address is awilliams@mintz.com.
CUSIP 474702CZ8
  • Issue Currency: United States of America Dollars
  • Announcement Date: 17-Aug-2018
  • News: UMB Bank, National Association (the Trustee) serves as successor Master Trustee under the General Hospital Revenue Bond Trust Indenture, dated as of October 1, 2011 (the General Indenture) by and between Jefferson Parish Hospital Service District No. 2, Parish of Jefferson, State of Louisiana, as issuer, (the District) and the prior master trustee and as successor Bond Trustee under the First Supplemental Trust Indenture, dated as of October 1, 2011 (the Bond Indenture) by and between the District and the prior bond trustee. The Bonds named above (the Bonds) were issued pursuant to and are governed by the General Indenture and the Bond Indenture. Capitalized terms not otherwise defined herein have the meanings given to them in the General Indenture or the Bond Indenture, as applicable. Events of Default On June 29, 2018 the District published its audited financial statements for the year ended December 31, 2017 (the Audited Financials) with the Municipal Securities Rulemaking Boards Electronic Municipal Market Access (EMMA) system. 2 The Audited Financials state, and otherwise acknowledge, that the Restricted Groups debt service coverage ratio for the year ended December 31, 2017 is less than 1.0. 3 Section 623 of the General Indenture provides, in relevant part, that If Net Income Available for Debt Service is less than 100% of the maximum Annual Debt Service Requirements of the 1 No representation is made as to the correctness of CUSIP numbers, which are included solely for the convenience of the holders of the Bonds. 2 Available to download from EMMA at https://emma.msrb.org/ES1176021-ES919302-ES1320417.pdf 3 See Audited Financials at p. 38. Jefferson Hospital Service District No. 2, Jefferson Parish, Louisiana (East Jefferson General Hospital) Revenue and Refunding Bonds, Series 2011 August 17, 2018 Page 2 of 3 UMB Bank, National Association Restricted Group for any Fiscal Year it shall be an Event of Default [under the General Indenture]. Section 701 of the General Indenture provides further that an Event of Default shall have occurred if default shall be made by the District in the performance or observance of the covenants, agreements and conditions on its part provided in Section 623 [among others]. Accordingly, an Event of Default has occurred under the General Indenture. Further, pursuant to Section 6.02 of the Bond Indenture, [t]he occurrence of an Event of Default pursuant to Section 701 of Article VII of the General Bond Indenture shall constitute. . . an Event of Default with respect to the Series 2011 Bonds. Therefore, an Event of Default has also occurred under the Bond Indenture. On August 8, 2018 the trustee delivered a Notice of Events of Default to East Jefferson General Hospital based upon the foregoing. The Events of Default described in this Notice are continuing and have not been waived or cured. Status of Strategic Partnership The District has previously made voluntary disclosures on EMMA concerning the exploration of a strategic partnership with Hospital Corporation of America (HCA).4 The Trustee is aware of articles that have appeared in the local press reporting that discussions between the District and HCA have ended. The Trustee, through its counsel, is seeking to arrange a public investor call with the Districts management to discuss, inter alia, the status of the operations and strategic plans of the District. Further information concerning a public investor call and/or additional information concerning the status of the District will be posted to EMMA as available and appropriate. Further Information The Trustee has retained the law firm of Mintz Levin Cohn Ferris Glovsky and Popeo PC, and specifically Daniel Bleck and Aaron Williams of that firm to represent it in connection with the general matters described in this Notice. Mr. Blecks phone number is (617) 348-4498 and his email address is dsbleck@mintz.com. Mr. Williams phone number is (617) 348-4964 and his email address is awilliams@mintz.com.
CUSIP 474702DL8
  • Issue Currency: United States of America Dollars
  • Announcement Date: 17-Aug-2018
  • News: UMB Bank, National Association (the Trustee) serves as successor Master Trustee under the General Hospital Revenue Bond Trust Indenture, dated as of October 1, 2011 (the General Indenture) by and between Jefferson Parish Hospital Service District No. 2, Parish of Jefferson, State of Louisiana, as issuer, (the District) and the prior master trustee and as successor Bond Trustee under the First Supplemental Trust Indenture, dated as of October 1, 2011 (the Bond Indenture) by and between the District and the prior bond trustee. The Bonds named above (the Bonds) were issued pursuant to and are governed by the General Indenture and the Bond Indenture. Capitalized terms not otherwise defined herein have the meanings given to them in the General Indenture or the Bond Indenture, as applicable. Events of Default On June 29, 2018 the District published its audited financial statements for the year ended December 31, 2017 (the Audited Financials) with the Municipal Securities Rulemaking Boards Electronic Municipal Market Access (EMMA) system. 2 The Audited Financials state, and otherwise acknowledge, that the Restricted Groups debt service coverage ratio for the year ended December 31, 2017 is less than 1.0. 3 Section 623 of the General Indenture provides, in relevant part, that If Net Income Available for Debt Service is less than 100% of the maximum Annual Debt Service Requirements of the 1 No representation is made as to the correctness of CUSIP numbers, which are included solely for the convenience of the holders of the Bonds. 2 Available to download from EMMA at https://emma.msrb.org/ES1176021-ES919302-ES1320417.pdf 3 See Audited Financials at p. 38. Jefferson Hospital Service District No. 2, Jefferson Parish, Louisiana (East Jefferson General Hospital) Revenue and Refunding Bonds, Series 2011 August 17, 2018 Page 2 of 3 UMB Bank, National Association Restricted Group for any Fiscal Year it shall be an Event of Default [under the General Indenture]. Section 701 of the General Indenture provides further that an Event of Default shall have occurred if default shall be made by the District in the performance or observance of the covenants, agreements and conditions on its part provided in Section 623 [among others]. Accordingly, an Event of Default has occurred under the General Indenture. Further, pursuant to Section 6.02 of the Bond Indenture, [t]he occurrence of an Event of Default pursuant to Section 701 of Article VII of the General Bond Indenture shall constitute. . . an Event of Default with respect to the Series 2011 Bonds. Therefore, an Event of Default has also occurred under the Bond Indenture. On August 8, 2018 the trustee delivered a Notice of Events of Default to East Jefferson General Hospital based upon the foregoing. The Events of Default described in this Notice are continuing and have not been waived or cured. Status of Strategic Partnership The District has previously made voluntary disclosures on EMMA concerning the exploration of a strategic partnership with Hospital Corporation of America (HCA).4 The Trustee is aware of articles that have appeared in the local press reporting that discussions between the District and HCA have ended. The Trustee, through its counsel, is seeking to arrange a public investor call with the Districts management to discuss, inter alia, the status of the operations and strategic plans of the District. Further information concerning a public investor call and/or additional information concerning the status of the District will be posted to EMMA as available and appropriate. Further Information The Trustee has retained the law firm of Mintz Levin Cohn Ferris Glovsky and Popeo PC, and specifically Daniel Bleck and Aaron Williams of that firm to represent it in connection with the general matters described in this Notice. Mr. Blecks phone number is (617) 348-4498 and his email address is dsbleck@mintz.com. Mr. Williams phone number is (617) 348-4964 and his email address is awilliams@mintz.com.



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