COVENTRY TO RECEIVE CAPITAL INFUSION OF $40 MILLION; NEW RELATIONSHIP STRENGTHENS COVENTRY'S FINANCIAL BASE.NASHVILLE, Tenn.--(BUSINESS WIRE)--March 17, 1997--Coventry Corporation (Nasdaq/NM:CVTY) today announced that it had entered into a letter of intent with Warburg, Pincus Ventures, L.P. (Warburg) for Warburg's purchase of $40 million of Convertible Exchangeable Subordinated Notes, together with warrants to purchase 2.35 million shares of Coventry Common Stock. The notes would be convertible into 4 million shares of Coventry Common Stock. The investment by Warburg will be subject to definitive documentation, the approval of state insurance regulators in certain states, and approval of Coventry's lending banks. The Notes will be exchangeable at the Company's option for shares of convertible preferred stock Convertible Preferred Stock Preferred stock that includes an option for the holder to convert the preferred shares into a fixed number of common shares, usually anytime after a predetermined date. Also known as "convertible preferred shares". , the authorization of which will require the approval of Coventry's shareholders. Dale B. Wolf, chief financial officer of Coventry Corporation, said, "This important addition to our company's financial base is a key step toward realizing the many opportunities we have at Coventry. It financially complements the operational turnaround underway and positions us to look to the future from a solid capital base." Allen F. Wise, president and chief executive officer of Coventry Corporation, said, "We consider the investment by Warburg a major development for Coventry Corporation, both in terms of its positive financial implications as well as its validation of the Company's restructuring strategy. I am very pleased that our company will have the opportunity to be aligned with a firm with such a successful history of investing in the managed care industry. Just as important as the financial commitment is the strategic vision Warburg will bring to our company via its experienced and capable business people." 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. The Company operates from regional headquarters in Pittsburgh and Harrisburg, Pennsylvania This article is about the capital city of the Commonwealth of Pennsylvania. For other places named Harrisburg, see Harrisburg (disambiguation). Harrisburg is the capital of the Commonwealth of Pennsylvania, a state of the United States of America. ; St. Louis, Missouri; Richmond, Virginia Richmond IPA: [ɹɯʒmɐnɖ] is the capital of the Commonwealth of Virginia, in the United States. ; and Jacksonville, Florida. This press release contains forward-looking information. The forward-looking statements are made pursuant to the safe harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. provisions of the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995. Forward-looking statements may be significantly impacted by certain risks and uncertainties described herein and in the Company's Annual Report on Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. filed with the Securities and Exchange Commission for the year ended December 31, 1995. CONTACT: Coventry Corporation, Nashville Dale B. Wolf, 615/391-2448 |
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