EXHIBIT 99.1
[IASIS HEALTHCARE(R) LOGO]
INVESTOR CONTACT: NEWS MEDIA CONTACT:
David R. White Tomi Galin
Chairman and Chief Executive Officer Vice-President, Marketing
or & Communications
W. Carl Whitmer (615) 467-1255
Chief Financial Officer
(615) 844-2747
IASIS HEALTHCARE REFINANCES CREDIT FACILITY
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ANNOUNCES NEW $475 MILLION SENIOR BANK CREDIT FACILITY
FRANKLIN, Tennessee (February 10, 2003) -- IASIS Healthcare(R) Corporation today
announced the refinancing of its senior bank credit facility. The new $475
million credit facility consists of a $125 million, five-year revolving credit
facility and a $350 million, six-year term loan, with borrowing rates generally
consistent with the previous credit facility. Proceeds from the new credit
facility were used to refinance amounts outstanding under the Company's previous
credit facility and to fund closing and other transaction related costs incurred
in connection with the refinancing. In the second quarter of fiscal year 2003,
the Company will recognize an estimated $3.9 million non-cash charge for the
write-off of deferred financing costs associated with the previous credit
facility.
The new credit facility reduces the Company's current mandatory principal
repayments and allows additional annual capital expenditures as compared with
the previous senior credit facility. The new credit facility provides for
revisions to certain financial covenants, including the replacement of a fixed
charge coverage ratio with a senior leverage ratio requirement.
David R. White, chairman, president, and chief executive officer of IASIS,
said, "We are pleased to have successfully completed the refinancing of our
senior bank credit facility. This refinancing provides us with greater
flexibility in pursuing and investing in the growth initiatives at our hospitals
and will position the Company to continue the operational success demonstrated
over the past four quarters."
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IASIS Healthcare Refinances Credit Facility
Page 2 February
10, 2003
IASIS Healthcare(R) Corporation, located in Franklin, Tenn., is a leading
owner and operator of acute care hospitals and develops and operates networks of
medium-sized hospitals in high-growth urban and suburban markets. The Company
operates its hospitals with a strong community focus by offering and developing
healthcare services to meet the needs of the markets it serves, promoting strong
relationships with physicians and working with local managed care plans.
Currently, IASIS Healthcare(R) owns or leases 14 hospitals with a total of 2,116
beds in service. These hospitals are located in four regions: Salt Lake City,
UT; Phoenix, AZ; Tampa-St. Petersburg, FL; and three cities in the state of
Texas, including San Antonio. IASIS Healthcare(R) also operates three ambulatory
surgery centers and a Medicaid health plan that currently serves over 60,000
members in Arizona. For more information on IASIS Healthcare(R) Corporation,
please visit the Company's website at www.iasishealthcare.com.
This press release contains forward-looking statements within the meaning
of the federal securities laws, which are intended to be covered by the safe
harbors created thereby. These forward-looking statements include all statements
that are not historical statements of fact and those regarding our intent,
belief or expectations including, but not limited to, the discussions of our
operating and growth strategy (including possible acquisitions and
dispositions), projections of revenue, income or loss, and future operations.
Forward-looking statements involve risks and uncertainties including, without
limitation, those associated with our ability to negotiate favorable contracts
with managed care plans; the highly competitive nature of the healthcare
industry; possible changes in Medicare and Medicaid reimbursement levels and
other federal or state healthcare reforms; future cost containment initiatives
undertaken by purchasers of healthcare services; our ability to attract and
retain qualified management and personnel, including physicians and nurses; our
ability to service our significant indebtedness; the effect of existing and
future governmental regulations, including the Balanced Budget Act of 1997, the
Balanced Budget Refinement Act of 1999 and the Medicare, Medicaid and SCHIP
Benefit Improvement and Protection Act of 2000; the impact of possible
governmental investigations; our ability to use our information systems
effectively; our limited operating history; our ability to successfully manage
the risks of our Medicaid managed care plan, Health Choice; our ability to
successfully complete and integrate acquisitions of other companies or
facilities; general economic and business conditions; and those risks,
uncertainties and other matters detailed in our Annual Report on Form 10-K for
the fiscal year ended September 30, 2002, and from time to time in our filings
with the Securities and Exchange Commission.
Although we believe that the assumptions underlying the forward-looking
statements contained in this press release are reasonable, any of these
assumptions could prove to be inaccurate, and, therefore, there can be no
assurance that the forward-looking statements included in this press release
will prove to be accurate. In light of the significant uncertainties inherent in
the forward-looking statements included herein, you should not regard the
inclusion of such information as a representation by the Company or any other
person that our objectives and plans will be achieved. We undertake no
obligation to publicly release any revisions to any forward-looking statements
contained herein to reflect events and circumstances occurring after the date
hereof or to reflect the occurrence of unanticipated events.
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