Exhibit (a)(14)
CII FINANCIAL, INC.
California Indemnity Insurance Company
Commercial Casualty Insurance Company
subsidiaries of Sierra Health Services, Inc.
P.O. Box 15645, Las Vegas, Nevada 89114-5645
PRESS RELEASE
FOR IMMEDIATE RELEASE
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CONTACTS: John F. Okita Andrew C. Karp
Chief Financial Officer Managing Director
(702) 242-7531 Banc of America Securities LLC
High Yield Special Products
(704) 388-4813 or (888) 292-0070
CII FINANCIAL CONTINUES NEGOTIATIONS WITH BONDHOLDERS;
COMPANY MAKES ANNOUNCEMENT REGARDING INTEREST PAYMENT
Las Vegas, March 16, 2001 - CII Financial Inc. announced today that the
interest payment on its 7 1/2% Convertible Subordinated Debentures Due September
15, 2001 (CUSIP No.125551LAB7) will not be made as scheduled. CII said it
expects this action will have no impact on its insurance company operations, nor
on the operations of its parent, Sierra Health Services Inc. (NYSE:SIE).
There is a 30-day grace period that applies to the scheduled March 15 interest
payment. The Company's insurance subsidiaries, California Indemnity Insurance
Company, Commercial Casualty Insurance Company, Sierra Insurance Company of
Texas and CII Insurance Company have paid and will continue to pay all of their
obligations on a full and timely basis.
CII Financial's President and Chief Executive Officer, Kathleen Marlon, stated,
"As we had previously announced, we are working with our advisors, Banc of
America Securities LLC, to complete a cash tender and exchange offer for CII
Financial's debentures. We have been in discussions with certain institutional
holders of debentures concerning the offer and hope to complete the offer in the
near future."
The debentures are solely obligations of CII Financial and are not guaranteed by
Sierra or any of CII's insurance company subsidiaries. CII Financial is a
holding company that conducts no operations, other than holding the stock of its
insurance company subsidiaries. CII Financial is wholly owned by Sierra Health
Services.
CII Financial filed an amended Registration Statement with the Securities and
Exchange Commission on March 1, 2001 in connection with its pending tender and
exchange offer for all $47 million of the outstanding Convertible Debentures.
That exchange offer currently expires at 5:00 p.m., New York City time, on March
22, 2001. The Company will pay accrued interest in cash on all debentures that
are validly tendered and accepted in the exchange offer.
---more---
CII Continues Negotiations p. 2/2/2/2/2
Banc of America Securities LLC is the exclusive dealer manager for the
offer. D.F. King & Co., Inc. is the information agent and Wells Fargo Corporate
Trust is the depositary. Copies of the amended Preliminary Prospectus and
Exchange Offer may be obtained by calling D.F. King at (800) 735-3591.
Additional information concerning the terms and conditions of the offer may be
obtained by contacting Banc of America Securities LLC at (888) 292-0070.
CII Financial is a holding company primarily engaged in writing workers'
compensation insurance in nine western and mid-western states through its wholly
owned subsidiaries, California Indemnity Insurance Company, Commercial Casualty
Insurance Company, Sierra Insurance Company of Texas and CII Insurance Company.
CII Financial is a wholly owned subsidiary of Sierra Health Services, Inc.
(NYSE:SIE), a diversified health care services company based in Las Vegas.
Statements in this news release that are not historical facts are
forward-looking and based on management's projections, assumptions and
estimates; actual results may vary materially. Forward-looking statements are
subject to certain risks and uncertainties, some of which may be found in the
Preliminary Prospectus and Exchange Offer and other documents filed with the
Securities and Exchange Commission and which are incorporated herein by
reference.
Additional Information and Where to Find It:
CII Financial Inc. has filed a Registration Statement with the Securities and
Exchange Commission on Form S-4 registering the new debentures to be issued in
the exchange offer. The Registration Statement and the preliminary prospectus
contained therein contain important information about CII Financial Inc., the
exchange offer and related matters. Security holders are urged to read the
Registration Statement and the preliminary prospectus contained therein, CII
Financial Inc.'s Schedule TO and any other relevant documents filed by the
Company with the SEC.
The Registration Statement has not yet become effective. The new debentures may
not be sold and, although you may tender your old debentures, tenders may not be
accepted prior to the time the Registration Statement becomes effective. This
shall not constitute an offer to sell or an offer to buy nor shall there be any
sale of the new debentures in any State in which such offer, solicitation or
sale would be unlawful.
Security holders are able to obtain copies of the Registration Statement on Form
S-4 and the preliminary prospectus, CII Financial Inc.'s Schedule TO and any
other relevant documents for free through the Web site maintained by the SEC at
http://www.sec.gov. In addition, these documents are available free of charge by
contacting the Information Agent for the offer, D.F.King & Co., at (800)
735-3591. If you have any questions about the offer, please call the Dealer
Manager for the offer, Banc of America Securities LLC, at (888) 292-0070.
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