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EXHIBIT 99.1
[CORAM HEALTHCARE PAGE HEADER]
FOR IMMEDIATE RELEASE FOR FURTHER INFORMATION, CONTACT:
JULY 31, 2000 KURT DAVIS 303-672-8830
CORAM COMPLETES SALE OF RX UNIT
DENVER - JULY 31, 2000 - Coram Healthcare Corporation (OTCBB:CRHE) announced
that effective today it has completed the previously announced sale for $41.3
million of its Coram Prescription Services unit, henceforth to be called
CuraScript, to a management-led group financed by GTCR Golder Rauner, LLC.
The sale generated approximately $38.0 million in cash after expenses. The cash
proceeds are being used to pay the remaining outstanding principal balance under
Coram Healthcare's revolving line of credit of $28.5 million, and $9.5 million
is being applied to the principal of the Series A notes.
Following the debt payments, the outstanding balance on Coram Healthcare's
principal debt instruments -- Series A and Series B notes -- will be
approximately $251.0 million.
"CuraScript is a good company and we will continue working with it closely in
marketing and supplying certain pharmacy services related to our core infusion
business and our employee benefits plan," said Daniel D. Crowley, Chairman,
President and Chief Executive Officer of Coram Healthcare. "The sale is part of
our strategy to focus on our core infusion services business and to reduce
debt."
Mr. Crowley added: "As discussed in recent press releases and SEC filings, we
continue to believe that Coram Healthcare needs to take significant steps to
permit it to remain compliant with Stark II regulatory requirements beginning
January 1, 2001, create a capital structure that will allow the company to
operate without an oppressive level of debt and deal with the $158.9 million
repayment of the Series A notes due May 26, 2001."
Denver-based Coram Healthcare, through its subsidiaries, is a national leader in
providing quality home infusion therapies, and support for clinical trials,
medical product development and medical informatics.
Note: Except for historical information, all other statements in this press
release are "forward-looking" within the meaning of the Private Securities
Litigation Reform Act of 1995. The Company's actual results may vary materially
from these forward-looking statements due to important risk factors, including,
but not limited to, the Company's lack of profitability; uncertainties
associated with the outcomes of certain pending legal proceedings; the Company's
significant level of outstanding indebtedness; the Company's need to obtain
additional financing or equity; uncertainties associated with the dilution that
would occur if the Company's existing debtholders exercise their equity
conversion rights; the Company's limited liquidity; and the Company's dependence
upon the prices paid by third party payors for the Company's services; and
certain other factors. Certain risk factors are described in greater detail in
the Company's Form 10-K Annual Report, as amended, Form 10-Q Quarterly Reports,
and Form 8-K Current Reports on file with the Securities and Exchange
Commission.
