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Coventry Sells Notes, Buys Back Stock

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NU Online News Service, Feb. 1, 2:19 p.m. – Coventry Health Care Inc., Bethesda, Md., a managed care company, says it has completed a previously announced effort to sell $175 million in senior notes through a private placement.

The senior notes pay an interest rate of 8.125% and are due 2012.

Coventry used the proceeds to complete a second, $176 million deal, to buy the equivalent of 10.2 million shares of its common stock from The Principal Financial Group Inc., Des Moines, Iowa.

Principal has had a large stake in Coventry since 1997, when Coventry traded stock for control of the Principal health insurance operation, Principal Health Care Inc.