Image Entertainment Inc. Reports Loss
Image Entertainment Inc.on Wednesday reported a first-quarter net loss of $283,000 (1 cent a share) compared with $1.6 million loss (-.03 cents) a year ago. Revenues, however, for the Chatsworth-based entertainment company rose 13 percent to $30.4 million. The company said in a release that the loss was mainly due to rising administrative costs as well as Musicland Holding Corps. Bankruptcy costs from last year.
Ixia Adds Online Gaming Traffic Simulation
Ixia, the Calabasas-based provider of IP performance test systems, announced the launch what the company say is the industry’s first online gaming traffic simulation tool. As part of the latest release of IxChariot, the new capability extends to more than 140 simulated applications. According to the company, this simulator will be used primarily in the on-line gaming market to verify the health of existing servers when faced with larger-than-expected traffic.
Health Net Refinances Senior Debt
Woodland Hills-based managed care insurer Health Net Inc. said it has entered into a series of transactions to refinance its $400 million of senior notes due 2011.
The company entered into a bridge loan facility with The Bank of Nova Scotia and a term loan credit facility with JP Morgan Chase Bank. This provided Health Net with $500 million in gross proceeds that the company used to purchase U.S. Treasury Securities. It will use the securities as collateral to secure its senior notes and to provide sufficient funds to make all of the remaining principal and interest payments on the senior notes. Health Net expects ratings of the notes to be upgraded because of the collateral, which it says will cause an interest rate drop from 9-7/8 percent to 8-3/8 percent on the notes.
The company expects an approximately $80 million one-time charge for costs related to refinancing the notes in its second quarter ending June 30.
Nasdaq Says North American Scientific in Compliance
Chatsworth-based radiation-therapy product maker North American Scientific Inc. said Wednesday that it received notice from The Nasdaq Stock Market, Inc. granting the company’s request for continued listing on The Nasdaq National Market.
Continued listing is subject to the company filing the required regulatory filings for the quarter ending July 31, showing shareholders’ equity above $10 million and otherwise continuing to comply with all other continued listing requirements of The Nasdaq National Market. Based upon the recent closing of the $24 million private placement of the company’s common stock, the company said its next quarterly filing should satisfy the shareholders’ equity requirement.
New President at Medical Association
Los Angeles orthopaedic surgeon Ralph John Di Libero, M.D. is scheduled to become the 135th president of the Los Angeles County Medical Association at a Wednesday evening ceremony. Di Libero has been a LACMA member for more than 30 years and has served as a councilor-at-large and president of the association’s central city District #1. He also is past president of the California Orthopaedic Association and the USC-Graduate Orthopaedic Society.
Moody’s Affirms VCA Antech’s Debt Rating
Moody’s Investors Service said Wednesday that it has affirmed all ratings for Los Angeles-base veterinary services provider VCA Antech, Inc. and Vicar Operating Company, VCA’s wholly-owned subsidiary. Moody’s also changed the outlook from stable to positive, reflecting recent positive operating trends, debt reduction, and its expectation that such trends will continue.
The Ba3 corporate family rating reflects favorable trends in industry dynamics, VCA’s strong position in its markets, and low susceptibility to regulatory risk (e.g. Medicare reimbursement) and litigation, the ratings agency said. The positive ratings outlook reflects Moody’s expectations that VCA will continue to reduce funded debt — despite its use of excess free cash flow to fund its acquisition strategy — and utilize its operating leverage to slowly improve margins.
Abraxis Bioscience Files Mixed Securities Shelf
Los Angeles-based drug maker Abraxis Bioscience Inc. said that on Tuesday it had registered a prospectus with the Securities and Exchange Commission to sell an undisclosed amount of debt securities, common stock, preferred stock and warrants.
The prospectus may be used to offer any of the above equity securities by selling securityholders, said the company, which will use net proceeds for general corporate purposes. No underwriters were listed in the filing.
