FPIC Insurance Group Inc. of Jacksonville, Fla. announced it has reached agreement with its lenders and is in full compliance with the terms and conditions of its Revolving Credit and Term Loan Agreement (Credit Facility) dated August 31, 2001, as amended.
Negotiation of an amendment to the Credit Facility was necessitated by the company’s noncompliance with a loan covenant following a change in its financial strength rating by A.M. Best Company (“Best”) from “A-” (Excellent) with a negative outlook to “B++” (Very Good) with a stable outlook on October 23, 2002. The amendment to the Credit Facility concludes negotiations between the company and its lenders on this issue.
Kim D. Thorpe, FPIC executive vice president and CFO, commented, “The new terms, which include an increase in our annual interest rate of approximately 75 basis points, or three-quarters of 1 percnt, and some additional collateral requirements, are very manageable and will not have a material impact on our liquidity.”
FPIC Insurance Group Inc., through its subsidiary companies, provides professional liability insurance for physicians, dentists and other healthcare providers, primarily in Florida and Missouri. It also provides management and administration services to Physicians’ Reciprocal Insurers, a New York medical professional liability insurance reciprocal, and third party administration services both within and outside the healthcare industry.
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