PHSY ...just bottomless susie.<gg>
Pacificare stops efforts to obtain sr note financing
SANTA ANA, Calif., July 27 (Reuters) - PacifiCare Health
Systems Inc. <PHSY.O>, one of the nation's largest health
coverage providers, said on Friday that is trying to repay or
extend its existing credit facility and has ceased efforts to
obtain senior note financing due to market conditions.
The company said it is working on debt refinancing
solutions to repay or extend its existing credit facility that
expires in January 2002. It will continue to explore financing
alternatives, which include, among others, an extension of its
existing credit facility, PacifiCare said.
The discontinuance of the offering also could cancel the
commitments the company had received from a group of lenders
for a new senior secured credit facility and its cash tender
offer for all of the outstanding 7 percent senior notes due
2003 of its wholly owned subsidiary, PacifiCare Health Plan
Administrators Inc. Both the proposed credit facility and cash
tender offer were contingent upon the completion of the senior
notes offering.
The company, which said it remains in compliance with all of
its existing bank covenants, reiterated that it will report
second quarter 2001 earnings per share of about 45 cents.
((Rachel Cohen / New York Newsdesk, (646) 223-6000))
REUTERS
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