TRUMBULL, Conn., April 1 /PRNewswire-FirstCall/ -- Oxford Health Plans,
Inc. (NYSE: OHP) announced today that the Company has received commitments
for, and is currently syndicating, a $400 million six-year variable rate term
loan and a $50 million revolving credit facility. The net proceeds of the
term loan will be used to fund the Company's $208 million obligation on the
previously announced $225 million settlement of the Company's 1997 securities
class action litigation, to refinance approximately $120 million of existing
debt and for general corporate purposes. The financing is planned to close in
late April, subject to customary closing conditions.
Founded in 1984, Oxford Health Plans, Inc. provides health plans to
employers and individuals primarily in New York, New Jersey and Connecticut,
through its direct sales force, independent insurance agents and brokers.
Oxford's services include traditional health maintenance organizations,
point-of-service plans, Medicare plans and third party administration of
employer-funded benefit plans.
Cautionary Statement Regarding Forward-Looking Statements
Certain statements in this press release, including statements concerning
the $450 million financing and other statements contained herein regarding
matters that are not historical facts, are forward-looking statements as
defined in the Securities Exchange Act of 1934; and because such statements
involve risks and uncertainties, actual results may differ materially from
those expressed or implied by such forward-looking statements. Factors that
could cause actual results to differ materially include, but are not limited
to:
* Changes in Federal or State regulation relating to health care and
health benefit plans, including proposed patient protection
legislation and mandated benefits.
* The state of the economy.
* Rising medical costs or higher utilization of medical services,
including higher out-of-network utilization under point-of-service
plans and new drugs and technologies.
* Competitive pressure on the pricing of the Company's products,
including acceptance of premium rate increases by the Company's
commercial groups.
* Higher than expected administrative costs in operating the Company's
business and the cost and impact on service of changing technologies.
* The ability of the Company to maintain risk transfer, risk sharing,
incentive and other provider arrangements and the resolution of
existing and future disputes over the reconciliation's and performance
under such arrangements.
* Any changes in the Company's estimates of its medical costs and
expected cost trends.
* The impact of future developments in various litigation, regulatory
proceedings and other governmental action (including the periodic
examination, investigation and review of the Company by various
Federal and State authorities).
* The Company's ability to renew existing members and attract new
members.
* The Company's ability to develop processes and systems to support its
operations and any future growth and administer new health care
benefit designs.
* Any future acts or threats of terrorism or war.
* Those factors included in the discussion under the caption "Cautionary
Statement Regarding Forward-Looking Statements" in Part I, Item 1, of
the Company's Annual Report on Form 10-K for the fiscal year ended
December 31, 2002.
SOURCE Oxford Health Plans, Inc.
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Related links:
http://www.oxfordhealth.com
Company News On-Call:
http://www.prnewswire.com/comp/104612.html
CONTACT:
Investor - Gary Frazier, +1-203-459-6674; or
Media - Maria Gordon Shydlo, +1-203-459-7674, both of Oxford
Health Plans, Inc.
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