Coventry Health Care Announces Intent to Redeem Outstanding Senior Notes.BETHESDA, Md. -- Coventry Health Care Coventry Health Care, Inc. (Coventry) (NYSE: CVH) is a managed health care company in the United States. On February 8th of 2007 Coventry agreed to acquire Concentra's Workers Compensation Managed Care Services Businesses. External links
See: New York Stock Exchange :CVH) announced today that it will redeem all $170.5 million of its outstanding 8.125% Senior Notes on February 15, 2007. Coventry will redeem the Senior Notes at a redemption price equal to 104.063% of the principal amount plus any interest accrued and unpaid to the redemption date. The CUSIP number for these notes is 222862AB0. A notice of redemption will be sent by U.S. Bank National Association, the Trustee for the Senior Notes, to all registered holders. Coventry will record a charge, including the write-off of previously paid unamortized issuance costs, of approximately $9.1 million before tax, or $0.04 per diluted share in the first quarter of 2007. Coventry anticipates the funds for payment of the redemption price will be provided by available cash, draws under its bank credit facility, or issuance of new debt securities. Inclusive of this charge, Coventry is maintaining previously provided 2007 diluted earnings per share diluted earnings per share An earnings measure calculated by dividing net income less preferred stock dividends for a period by the average number of shares of common stock that would be outstanding if all convertible securities were converted into shares of guidance in the range of $3.82 - $3.95. This press release contains forward-looking statements made pursuant to the safe harbor 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 are defined as statements that are not historical facts and include those statements relating to future events or future financial performance. Actual performance may be significantly impacted by certain risks and uncertainties, including those described in Coventry's Annual Report on Form 10-K for the year ended December 31, 2005 and Coventry's Form 10-Q for the quarter ended September 30, 2006. Coventry undertakes no obligation to update or revise any forward-looking statements. Coventry Health Care is a national managed health care company based in Bethesda, Maryland operating health plans, insurance companies, network rental, managed care and workers' compensation services companies. Coventry provides a full range of risk and fee-based managed care products and services, including HMO HMO health maintenance organization. HMO n. A corporation that is financed by insurance premiums and has member physicians and professional staff who provide curative and preventive medicine within certain financial, , PPO PPO abbr. preferred provider organization PPO Managed care Preferred provider organization, see there Infectious disease Pleuropneumonia-like organism, see there , POS, Medicare Advantage, Medicare Prescription Drug Plans, Medicaid, Workers' Compensation services and Network Rental to a broad cross section of individuals, employer and government-funded groups, government agencies, and other insurance carriers and administrators in all 50 states as well as the District of Columbia District of Columbia, federal district (2000 pop. 572,059, a 5.7% decrease in population since the 1990 census), 69 sq mi (179 sq km), on the east bank of the Potomac River, coextensive with the city of Washington, D.C. (the capital of the United States). and Puerto Rico. More information is available on the Internet at www.cvty.com. |
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