PacifiCare Gets $1.5-Billion Line of Credit
Times Staff and Wire Reports
PacifiCare Health Systems of Cypress said Wednesday that it has established a $1.5-billion line of credit with several financial institutions to help finance its acquisition of FHP International Corp., a rival HMO in Orange County. PacifiCare said it believes the FHP acquisition will be completed in January. The credit line will pay for the fees and expenses incurred in the acquisition and for general corporate purposes. The Cypress-based company has signed an agreement to acquire FHP for about $35 a share, including $17.50 a share in cash.
