NEW YORK, July 21, 2008 (PRIME NEWSWIRE) -- Aveta Inc., a leader in Medicare Advantage with over 195,000 members, today announced that the loan agreement with its lenders covering credit facilities extended to the company and its operating subsidiaries, MMM Holdings Inc., NAMM Holdings Inc. and Preferred Health Management Corporation has been amended.
Under the terms of the amended loan agreement, Aveta and its subsidiaries made a term loan repayment of $50 million. The maturity date on remaining outstanding balances of approximately $404 million after the repayment will remain unchanged at August 2011. As a result of Aveta's improved financial performance, the company is in full compliance with all covenants in its amended loan agreement.
"The successful amendment of our loan agreement despite the current difficult credit market conditions reflects the continued strength of our medical management business in California and the significantly improved operational and financial performance of our Medicare Advantage business in Puerto Rico," said Mr. Warren Cole, Chief Financial Officer of Aveta, Inc. "With this agreement, Aveta and its operating subsidiaries have in place a sustainable and conservative capital structure and the financial flexibility to continue our progress in strengthening and growing the business."
About Aveta
Caring for over 195,000 Medicare beneficiaries, Aveta is one of the largest for-profit companies focusing on Medicare Advantage and a leader in addressing the unique healthcare needs of the chronically ill. Aveta is headquartered in Fort Lee, New Jersey and currently has operating subsidiaries in Southern California, Puerto Rico, and Illinois.
This press release shall not constitute an offer to sell or the solicitation of an offer to buy any security nor shall any offer, solicitation or sale be deemed to be made by the Company in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such jurisdiction.
Special note regarding forward-looking statements:
The matters disclosed in the foregoing release include, and oral statements made from time to time by representatives of the Company may include, forward-looking statements that represent the Company's current expectations of the future. Any such statements are subject to risks and uncertainties that could cause actual outcomes to differ materially from these expectations. These forward-looking statements include statements relating to the outcome of any negotiations with the Company's lenders and potential sources of capital and to the Company's anticipated financial performance and business prospects. These forward-looking statements are necessarily estimates reflecting the best judgment of senior management and involve a number of risks and uncertainties, some of which may be beyond our control, that could cause actual results to differ materially from those suggested by the forward-looking statements. Such factors include, without limitation, the Company's ability to successfully negotiate the terms of any agreement with its lenders and other sources of capital and its ability to implement its revised business plan and improve the operating performance of its business, membership enrollment and dis-enrollment patterns; changes in utilization; changes in medical and prescription drug cost trends; the Company's ability to accurately estimate and calculate Part D risk corridor adjustments; CMS retroactive risk adjustments to Medicare rates; marketing expenses related to limited open enrollment; increasing competition and potential confusion in the marketplace regarding other MA, MA-PD, PDP, and PFFS plan offerings; the Company's ability to accurately estimate incurred but not reported medical claims; contractual disputes with providers; increases in costs or liabilities associated with litigation; legislative and regulatory actions or changes; costs associated with information and data systems conversions and compliance with regulatory mandates; recent management changes; and changes in tax estimates, assets, or liabilities and valuation allowances related thereto. These forward-looking statements speak only as of the date stated and the Company does not undertake any obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise, even if experience or future events make it clear that any expected results expressed or implied by these forward-looking statements will not be realized.