The Schenectady County Capital Resource Corporation recently approved and closed on $15.3 million in bond financing for Ellis Medicine.
The bonds will allow Ellis Medicine to refinance debt with the NYS Dormitory Authority at a lower interest rate. Ellis Medicine will repay bonded money, with Schenectady County and CRC holding no financial obligation. The CRC earned a fee totaling $114,900 on the project, which will be invested in local economic development projects.
“Ellis Medicine is one of the largest employers in Schenectady County with more than 3,500 jobs,” County Legislator and CRC Board Vice Chair Gary Hughes said in a prepared statement. “We are pleased to be able to assist them with this bond financing. By using the CRC, Ellis also supports our local economic development efforts.”
Ellis Medicine President and CEO James Connolly said the company would achieve “significant savings” through refinancing some of its existing debt.
“As a not-for-profit hospital facing the challenges of health care reform in an uncertain economy, it’s even more important that we continue to be good stewards of our resources,” Connolly said in a prepared statement. “Every dollar we save is a dollar we can reinvest in our people, technology and facilities so we can better meet the healthcare needs of our communities as an even stronger organization.”
Schenectady County established the CRC to assist non-profit groups issue bonds while generating revenue, which could then help other economic development projects. Schenectady Metroplex Development Authority administers the CRC.