Health Net plans to redeem 9 7/8% notes due 2011 after backing with Treasuries

By Jennifer Chiou

New York, June 28 - Health Net, Inc. announced that it intends to redeem its $400 million of 9 7/8% senior notes due 2011 assuming that an increase in ratings results in the decrease of the interest rate to 8 3/8%.

The ratings upgrades to investment grade are expected as a result of the Woodland Hills, Calif., managed health care company's pledge of collateral to secure the notes.

Health Net entered into a bridge loan facility with The Bank of Nova Scotia and a term loan credit facility with JP Morgan Chase Bank, NA, and the company used the proceeds to purchase U.S. Treasury securities, which were pledged as collateral for the notes.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.