UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(D) OF
THE SECURITIES AND EXCHANGE ACT OF 1934
DATE OF REPORT (DATE OF EARLIEST EVENT REPORTED): May 16, 2000
Commission file number 001-12055
PARACELSUS HEALTHCARE CORPORATION
(Exact name of registrant as specified in its charter)
CALIFORNIA 95-3565943
(State or other jurisdiction of (IRS Employer
incorporation or organization) Identification No.)
515 W. Greens Road, Suite 500, Houston, Texas
(Address of principal executive offices)
77067 (281) 774-5100
(Zip Code) (Registrant's telephone number,
including area code)
ITEM 5. OTHER EVENTS
On May 16, 2000, Paracelsus Healthcare Corporation (the "Company")
consummated a new $62.0 million subsidiary level financing facility (the "New
Credit Facility"). The New Credit Facility replaced and expanded capacity under
the Company's prior off-balance sheet commercial paper program and will be
used, along with cash on hand, to fund the normal working capital and capital
expenditure requirements of the Company's hospitals. The New Credit Facility
is an obligation of certain of the Company's subsidiaries and will be secured
by all patient accounts receivable of the Company's hospitals and a first lien
on two of its hospitals and certain other miscellaneous assets of the Company's
subsidiaries.
On May 16, 2000, the Company issued a press release on the above
Related matter, a copy of which is included in Exhibit 99.2 to this Form 8-K
and is incorporated herein by reference.
Item 7. Financial Statements and Exhibits.
(c) Exhibits.
Exhibit 99.2 Press Release dated May 16, 2000 issued by the
Company.
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
Paracelsus Healthcare Corporation
(Registrant)
Dated: May 17, 2000 By: /S/ LAWRENCE A. HUMPHREY
----------------------------------
Lawrence A. Humphrey
Executive Vice President,
& Chief Financial Officer
Exhibit 99.2
FOR IMMEDIATE RELEASE: CONTACT: Deborah H. Frankovich
Senior Vice President and
Treasurer
281-774-5100
PARACELSUS HEALTHCARE CORPORATION REPORTS A NEW CREDIT FACILITY
HOUSTON, Texas (May 16, 2000) -- Paracelsus Healthcare Corporation
(NYSE:PLS) today announced that it has consummated a new $62.0 million
subsidiary level financing facility (the "New Credit Facility"). The New Credit
Facility replaced and expanded capacity under the Company's prior off-balance
sheet commercial paper program and will be used, along with cash on hand, to
fund the normal working capital and capital expenditure requirements of the
Company's hospitals. The New Credit Facility is an obligation of certain of the
Company's subsidiaries and will be secured by all patient accounts receivable of
the Company's hospitals and a first lien on two of its hospitals and certain
other miscellaneous assets of the Company's subsidiaries.
Commenting on the New Credit Facility, Robert L. Smith, Chief Executive
Officer of Paracelsus, said, "The New Credit Facility represents a significant
step in the Company's efforts to provide its hospitals with the necessary
liquidity to operate on a sound fiscal basis while the Company addresses its
debt situation at the parent level. More importantly, the New Credit Facility,
along with cash on hand, ensures that the Company can continue to provide high
quality healthcare to its patients and the communities it serves, which is at
the core of our mission."
Paracelsus Healthcare Corporation, a public company listed on the New
York Stock Exchange, was founded in 1981 and is headquartered in Houston, Texas.
Including a hospital partnership, Paracelsus presently owns the stock of
hospital corporations that own or operate 10 hospitals in seven states with a
total of 1,287 beds. Additional Company information may be accessed through
http://www.prnewswire.com under the Company's name.
Certain statements contained herein are "forward-looking statements"
made pursuant to the safe harbor provisions of the Private Securities Litigation
Reform Act of 1995. Forward-looking statements involve a number of risks and
uncertainties. All statements regarding the Company's expected future financial
position, results of operations, cash flows, liquidity, financing plans,
business strategy, budgets, projected costs and capital expenditures,
competitive position, growth opportunities, plans and objectives of management
for future operations and words such as "anticipate," "believe," "plan,"
"estimate," "expect," "intend," "may" and other similar expressions are
forward-looking statements. Such forward-looking statements are inherently
uncertain, and stockholders must recognize that actual results may differ
materially from the Company's expectations as a result of a variety of factors,
including, without limitation, those discussed below.
Factors which may cause the Company's actual results in future periods
to differ materially from forecast results include, but are not limited to: i)
Competition and general economic, demographic and business conditions, both
nationally and in the regions in which the Company operates; ii) Existing
government regulations and changes in legislative proposals for healthcare
reform, including changes in Medicare and Medicaid reimbursement levels; iii)
The ability to enter into managed care provider arrangements on acceptable
terms; iv) Liabilities and other claims asserted against the Company; v) The
loss of any significant customer, including but not limited to managed care
contracts; vi) The ability to attract and retain qualified personnel, including
physicians; vii) The continued listing of the Company's common stock on the New
York Stock Exchange; viii) The Company's ability to develop and consummate an
acceptable and sustainable alternative financial structure, considering the
Company's liquidity and limited financial resources; and x) The possibility that
the Company may be forced to file for protection under Chapter 11 of the Federal
Bankruptcy Code or that its creditors could file an involuntary petition seeking
to place the Company in bankruptcy.
The Company is generally not required to, and does not undertake to,
update or revise its forward-looking statements.
