COVENTRY SIGNS AMENDED BANK AGREEMENT.NASHVILLE, Tenn.--(BUSINESS WIRE)--April 1, 1997--Coventry Corporation (Nasdaq/NM:CVTY) today announced that it had signed a new agreement, replacing the Company's previous credit line, with its existing bank group, headed by Morgan Guaranty As a verb, to agree to be responsible for the payment of another's debt or the performance of another's duty, liability, or obligation if that person does not perform as he or she is legally obligated to do; to assume the responsibility of a guarantor; to warrant. Trust Company of New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of . Under the terms of the new agreement, Coventry entered into a one-year term loan, maturing April 1, 1998, for the balance of the credit line of $90 million. The term loan bears interest at prime plus 2%. Dale B. Wolf, chief financial officer of Coventry Corporation, said, "We are pleased to have reached agreement with our bank group. With the signing of this new agreement, the events of default which existed at year-end have been eliminated. In addition, the bank group has approved the previously announced sales of the medical offices connected with the Pittsburgh and St. Louis plans and the proposed issuance of $40.0 million of convertible securities to Warburg Pincus Warburg Pincus is a private equity firm with offices in the United States, Europe and Asia. It has been a leading private equity investor since 1971. The firm currently has approximately $14 billion under management, and invests in a range of industries including information and Ventures, L.P." The amended credit agreement requires principal payments of $10 million at the end of the second quarter, $7 million at the end of the third quarter, and $18 million at the end of the fourth quarter, with the $55 million balance due on April 1, 1998. The agreement also requires that 50% of the proceeds from the proposed security issuance be used to prepay pre·pay tr.v. pre·paid, pre·pay·ing, pre·pays To pay or pay for beforehand. pre·pay  ment n. the loan balance, thereby reducing subsequently scheduled reductions by $10 million in 1997. Coventry Corporation, headquartered in Nashville, Tennessee “Nashville” redirects here. For other uses, see Nashville (disambiguation). Nashville is the capital and the second most populous city of the U.S. state of Tennessee, after Memphis. , is a managed health care company that provides a wide range of health benefits and services to a broad cross section of employer and government-funded groups in Pennsylvania, Ohio, West Virginia West Virginia, E central state of the United States. It is bordered by Pennsylvania and Maryland (N), Virginia (E and S), and Kentucky and, across the Ohio R., Ohio (W). Facts and Figures Area, 24,181 sq mi (62,629 sq km). Pop. , Missouri, Illinois, Virginia and Florida. CONTACT: Coventry Corporation, Nashville Dale B. Wolf, 615/391-2448 |
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