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Health Net Prices Senior Notes Offering

Posted on: Tuesday, 15 May 2007, 21:00 CDT

Health Net, Inc. (NYSE:HNT) today announced that it has priced a $300 million offering of 6 3/8% senior notes due 2017. The net proceeds from the note offering will be used to repay amounts outstanding under the company's $300 million term loan agreement due June 23, 2011.

Standard & Poor's Rating Services has assigned its BB+ senior debt rating; Moody's Investors Service has assigned its Ba2 senior unsecured debt rating; and Fitch has assigned its BB+ rating to the notes. J.P. Morgan Securities Inc., Banc of America Securities LLC, and Citigroup Global Markets Inc. acted as Joint Book-Running Managers for the offering of the notes.

This press release shall not constitute an offer to sell or a solicitation of an offer to purchase any of these securities, and shall not constitute an offer, solicitation or sale in any state or jurisdiction in which such an offer, solicitation or sale would be unlawful.

A copy of the prospectus relating to the offering can be obtained from J.P. Morgan Securities Inc., 270 Park Avenue, 8th Floor, New York, New York 10017; telephone: (212) 834-4533.

About Health Net

Health Net, Inc. is among the nation's largest publicly traded managed health care companies. Its mission is to help people be healthy, secure and comfortable. The company's health plans and government contracts subsidiaries provide health benefits to approximately 6.6 million individuals across the country through group, individual, Medicare, Medicaid and TRICARE and Veterans Affairs programs. Health Net's behavioral health services subsidiary, MHN, provides mental health benefits to approximately 7.1 million individuals in all 50 states. The company's subsidiaries also offer managed health care products related to prescription drugs, and offer managed health care product coordination for multi-region employers and administrative services for medical groups and self-funded benefits programs.

For more information on Health Net, Inc., please visit the company's Web site at www.healthnet.com.

Cautionary Statements

This release contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and Section 27A of the Securities Act of 1933, as amended, that involve a number of risks and uncertainties. All statements, other than statements of historical information provided herein, may be deemed to be forward-looking statements. These statements are based on management's analysis, judgment, belief and expectation only as of the date hereof, and are subject to uncertainty and changes in circumstances. Without limiting the foregoing, the words "believes,""anticipates,""plans,""expects,""may,""should,""could,""estimate,""intend" and other similar expressions are intended to identify forward-looking statements. Actual results could differ materially due to, among other things, rising health care costs, negative prior period claims reserve developments, trends in medical care ratios, issues relating to provider contracts, litigation costs, operational issues, health care reform and general business conditions. Additional factors that could cause actual results to differ materially from those reflected in the forward-looking statements include, but are not limited to, the risks discussed in the "Risk Factors" section included within the company's most recent Annual Report on Form 10-K filed with the SEC. Readers are cautioned not to place undue reliance on these forward-looking statements. The company undertakes no obligation to publicly revise these forward-looking statements to reflect events or circumstances that arise after the date of this release.

Source: Business Wire

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