Exhibit 1
press release
Sierra Health Services, Inc.(R)
2724 North Tenaya Way
Las Vegas, Nevada 89128
(702) 242-7000
FOR IMMEDIATE RELEASE
CONTACTS: Peter O'Neill Ron Heckmann
VP, Public & Investor Relations Gallen Associates
Sierra Health Services, Inc. CB Richard Ellis
(702) 242-7156 (925) 930-9848
[email protected] [email protected]
SIERRA HEALTH SERVICES ANNOUNCES
COMPLETION OF SALE/LEASEBACK TRANSACTION
FOR LAS VEGAS REAL ESTATE
Las Vegas, January 2, 2001 - Sierra Health Services, Inc. (NYSE:SIE)
announced today that it has completed a sale of the majority of its Las Vegas
real estate holdings to CB Richard Ellis Corporate Partners, LLC, a Los
Angeles-based investment fund sponsored by CB Richard Ellis Investors, LLC.
Sierra entered into a long-term lease arrangement with the buyers, effective
December 28, 2000. The purchase price for the properties is $115 million, with
the initial net proceeds to Sierra expected to be $61.7 million. Sierra will use
$50 million of these proceeds as an initial payment on its recently amended and
restated line of credit.
The purchase includes approximately 550,000 square feet of
administrative office space and medical clinic facilities. The bulk of the
office space is located on the campus of the company's corporate headquarters in
northwest Las Vegas. The clinics are located throughout the Las Vegas
metropolitan area. Not included in the purchase price is one administrative
office building on the main campus that houses the home offices of Health Plan
of Nevada, Inc. and Sierra Health and Life Insurance Company, Inc.
"We are pleased that we have been able to reach a favorable agreement
with CB Richard Ellis," said Anthony M. Marlon, M.D., chairman and chief
executive officer of Sierra. "Late last summer, we announced a series of
initiatives designed to reduce the company's debt load. This latest transaction
allows us to make a substantial reduction to our newly amended credit line and
improves the company's financial position as we begin 2001."
CB Richard Ellis Investors, LLC is the $10 billion investment
management arm of CB Richard Ellis (NYSE:CBG). The Corporate Partners unit was
formed in 1999 to provide corporations with strategic and financial solutions to
real estate ownership including sale/leaseback transactions. Corporate Partners
acts as principal in the acquisition and resale of "credit" and "non-credit" net
leased properties and portfolios.
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Sierra Announces Completion of Sale/Leaseback p.2/2/2/2/2
"The sale/leaseback transaction is a win-win solution for many
corporations," said Howard Sands, Corporate Partners principal. "Increasingly,
corporations are seeking strategic alternatives that let them maintain control
of their real estate while freeing up capital that's better utilized in their
core business. For Sierra, this type of transaction allows the corporation to
realize the full market value of its real estate while continuing to control the
property on a long-term basis with known occupancy costs."
The Las Vegas and Phoenix offices of CB Richard Ellis represented
Sierra in locating a buyer for its Las Vegas portfolio.
Sierra Health Services, Inc., based in Las Vegas, is a diversified
health care services company that operates health maintenance organizations,
indemnity and workers' compensation insurers, military health programs,
preferred provider organizations and multi-specialty medical groups. Sierra's
subsidiaries serve 1.3 million people through health benefit plans for
employers, government programs and individuals. For more information, visit the
company's website at www.sierrahealth.com.
Headquartered in Los Angeles, CB Richard Ellis, the world's leading
real estate services company, has 10,000 employees worldwide and serves real
estate owners, investors and occupiers through some 250 principal offices in 43
countries. Services include property sales and leasing, property management,
corporate services and facilities management, mortgage banking, investment
management, capital markets, appraisal/valuation, research and consulting. In
1999, CB Richard Ellis completed 30,554 sale and lease assignments, with an
aggregate consideration value of nearly $48 billion.
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, which include but are not limited
to: 1) potential adverse changes in government regulations and programs,
including TRICARE, Medicare and legislative proposals to eliminate or reduce
ERISA pre-emption of state laws that would increase potential litigation
exposure; 2) competitive forces that may affect pricing, enrollment and benefit
levels; 3) unpredictable medical costs and inflation; 4) successful integration
of acquired companies; 5) economic impact of expansion; 6) changes in borrowing
costs and commitments; and 7) potential complications with computer conversions.
Further factors concerning financial risks and results may be found in documents
filed with the Securities and Exchange Commission and which are incorporated
herein by reference.
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