Health Management Associates set plans Wednesday to return $2.4 billion to shareholders through a $10-a-share special dividend.
HMA guided sharply lower for 2007, citing tighter guidelines for recognizing and writing off revenue tied to uninsured patients. It expects to make 61 to 71 cents a share on revenue of around $4.1 billion. Analysts were looking for a profit of $1.34 a share on revenue of $4.32 billion.
HMA said the fourth quarter will be hit by a bad debt charge of $200 million, or 50 cents a share, as the company writes off the value of care provided to uninsured patients.
HMA will recapitalize its balance sheet through $3.25 billion of new senior secured credit facilities, including the refinancing of amounts outstanding under the company's current revolving line of credit. The $3.25 billion senior secured credit facilities, which are pre-payable without penalty, consist of a seven-year $2.75 billion term loan and a $500 million six-year revolving credit facility (expected to be unfunded at closing), which will be secured by a portion of the company's assets. HMA's $400 million of 6.125% senior notes and $588 million of convertible subordinated notes will remain outstanding; however, the 6.125% Senior Notes will be secured pari passu with the senior credit facility
The company said it doesn't expect to buy back any stock, "except in the event of significant undervaluation" of its shares. It suspended its 6-cent quarterly dividend.
looks like there is no buyout firm that wants to take hma private... like they did with the $33 billion takeover for hca. http://healthcare.seekingalpha.com/article/20829 sieht so aus als wenn sich keine buyout firma findet die hma von der börse nimmt...... wie bei dem giganten deal von hca für $33 billion geschehen.
UPDATE: Fitch Cuts Health Management Ratings
Fitch cut the company's issuer default rating to "BB-" and its newly secured senior notes to "BB." Both had been at "BBB+" ratings.