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Oxford Plans To Borrow $450 Million

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NU Online News Service, April 2, 2003, 10:38 a.m. EST – Oxford Health Plans Inc., Trumbull, Conn., says it hopes to borrow $450 million by the end of April.

The managed care company plans to use some of the cash to cover the cost of $208 million in class-action settlement obligations, some to refinance $120 million in existing debt, and some to support its current operations.

Oxford is trying to put together a group of lenders that will supply a $400 million, six-year loan and a $50 million revolving credit facility.

A revolving credit facility is the corporate equivalent of a credit card account.