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): February 15, 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 February 15, 2000, Paracelsus Healthcare Corporation (the "Company")
elected not to make the interest payment of approximately $16.3 million due on
the Company's $325 million 10% Senior Subordinated Notes due 2006 (the "Notes").
The scheduled interest payment is subject to a 30-day grace period that will
expire on March 16, 2000.
The Company has retained the firm of Chase Securities Inc. as its
financial advisor in connection with the exploration of alternatives with
respect to Paracelsus' capital structure. The Company intends to engage in
discussions with the holders of the Notes.
On February 14, 2000, the Company issued a press release, a copy of
which is included in Exhibit 99.1 to this Form 8-K and is incorporated herein by
reference.
Item 7. Financial Statements and Exhibits.
(c) Exhibits.
Exhibit 99.1 Press Release dated February 14, 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: February 15, 2000 By: /S/ LAWRENCE A. HUMPHREY
----------------------------------
Lawrence A. Humphrey
Executive Vice President,
& Chief Financial Officer
Exhibit 99.1
FOR IMMEDIATE RELEASE: CONTACT: Deborah H. Frankovich
Senior Vice President and
Treasurer
281-774-5100
PARACELSUS HEALTHCARE CORPORATION COMMENTS ON OUTSTANDING INTEREST PAYMENT
HOUSTON, Texas, February 14, 2000 - Paracelsus Healthcare Corporation
(NYSE: PLS) today announced that the scheduled February 15, 2000 interest
payment of $16.25 million on its $325 million 10% Senior Subordinated Notes will
not be paid tomorrow. The scheduled interest payment is subject to a 30-day
grace period that will expire on March 16, 2000.
Additionally, Paracelsus has retained the firm of Chase Securities Inc.
as its financial advisor in connection with the exploration of alternatives with
respect to Paracelsus' capital structure. The Company intends to engage in
discussions with the holders of the $325 million Notes.
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 or operates 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 in this press release 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. Factors which may cause the Company's actual
results in future periods to differ materially from forecast results include,
but are not limited to: general economic and business conditions, both
nationally and in the regions in which the Company operates; industry capacity;
demographic changes; existing government regulations and changes in, or the
failure to comply with government regulations; legislative proposals for
healthcare reform; the ability to enter into managed care provider arrangements
on acceptable terms; changes in Medicare and Medicaid reimbursement levels;
liabilities and other claims asserted against the Company; competition; the loss
of any significant customer; changes in business strategy, divestiture or
development plans; the ability to attract and retain qualified personnel,
including physicians; the continued listing of the Company's common stock on the
New York Stock Exchange; the availability of capital at reasonable terms and
conditions to fund working capital requirements and the expansion of the
Company's business; its continued compliance with its existing debt covenants
and its ability to obtain waivers in the event of noncompliance; the ability of
the Company to utilize its tax assets; and the ability to satisfactorily
restructure its balance sheet. Given these uncertainties, prospective investors
are cautioned not to place undue reliance on such forward-looking statements.
The Company is generally not required to, and does not undertake to update or
revise its forward-looking statements.
