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Biotech / Medical : Novacare (NOV) breaking out... -- Ignore unavailable to you. Want to Upgrade?

To: wbASSETt who wrote (382)	4/5/1999 4:33:00 PM
From: simarx	Read Replies (1) \| Respond to of 420

''Proceeds of the transaction will be sufficient to entirely retire bank debt,'' said Foster. ''We believe the proceeds from the sale of our orthotics and prosthetics business and the unlocking of value in NovaCare Employee Services will contribute substantially to resolving NovaCare's capital structure issue.''

To: wbASSETt who wrote (382)	4/8/1999 1:21:00 PM
From: Jim Oravetz	Read Replies (1) \| Respond to of 420

I guess these folks are not too impressed with the recent news. 4/8/99 NovaCare Debt Ratings Lowered by S&P, Remains Watch-Negative NEW YORK (Dow Jones)--Standard & Poor's said lowered its corporate credit rating for NovaCare Inc. to single-B-minus from single-B-plus. The rating on the company's convertible subordinated debt was lowered to triple-C from single-B-minus. The ratings remain on CreditWatch with negative implications, where they were placed November 3, 1998. Although the recently announced sale of NovaCare's orthotic and prosthetic (O&P) service business should improve the company's capital structure and financial flexibility, the improvement is offset by the ongoing deterioration in the remaining long-term care business. Moreover, the proceeds from the sale are expected to be used to repay bank debt, and the refinancing of convertible debt due Jaodingly, continued operating losses in the long-term care business could lead to a lower rating. The rating actions reflect the significant reduce continued weak near-term prospects for reduced reimbursement and utilization. S&P will continue to monitor developments and communicate with management regarding the continued impact of PPS on operations and the company's challenges in meeting financial obligations. Jim