PacifiCare Increases Buyback Allowance

PacifiCare Health Systems Inc., one of California’s largest managed care companies, amended its credit facility to allow for a buyback of up to $1 billion of the company’s shares.

The Santa Ana company’s previous buyback allowance was for $500 million.

In a press release Wednesday, PacifiCare said it repurchased 8.8 million shares in 1999. That total includes 6.3 million shares repurchased as part of the company’s ongoing 12-million-share buyback program, which expires early next year.

The company has about 37.3 million shares outstanding.

PacifiCare expects to fund future repurchases through cash from operations, bank debt and/or other debt financing.