Credit pact amended; president to retire

Tuesday, Dec. 19, 2000 | 11:21 a.m.

Las Vegas-based Sierra Health Services Inc., which operates the state's largest health maintenance organization, has signed an amended credit agreement with a syndicate of banks.

The company also announced Monday that Erin MacDonald, its president and chief operating officer, would take a medical retirement next month.

A statement issued by the company said the new credit agreement, developed with a syndicate of banks led by Bank of America and First Union National Bank, provides Sierra with $185 million in revolving credit, all of which currently is drawn.

Loans initially will bear interest at a 1.75 percent margin rate plus the greater of 0.5 percent above the latest federal funds rate or Bank of America's prime lending rate. The agreement expires in September 2003.

The company also said MacDonald, who has worked with the company since 1976 and has been president and chief operating officer since 1994, will continue as a part-time consultant and will retain her seat on Sierra's board of directors.

Sierra Chief Executive Anthony Marlon said he would assume MacDonald's duties until a replacement is named.