We conduct our operations from our headquarters in Tampa, Florida. The data processing facility for our PlanVista Solutions segment is in Middletown, New York. The central data processing facilities for our third party administration segment are located in Tampa, Florida and El Monte, California. We lease these facilities, as well as all of our other facilities. We believe that our facilities are adequate for our present and anticipated business requirements.
We have derived the following selected historical financial data from our audited consolidated financial statements at December 31, 2000 and 1999 and for the years ended December 31, 2000, 1999, and 1998, which are included in this Form 10-K, and from our audited financial statements at December 31, 1998, 1997, and 1996 and for the years ended December 31, 1997 and 1996, which are not included herein. The report of PricewaterhouseCoopers LLP, our independent accountants, on our consolidated financial statements at December 31, 2000 and 1999 and for the years ended December 31, 2000, 1999, and 1998 appears elsewhere in this Form 10-K. Our selected historical financial data should be read in conjunction with the related financial statements and notes thereto appearing elsewhere in this Form 10-K.
The following is a discussion of changes in the consolidated results of our operations for the years ended December 31, 2000, 1999, and 1998.
We are a leading managed health care services company that provides medical cost containment and third party administration services for health care payers and providers in the United States. Our medical cost containment segment, known as PlanVista Solutions, provides integrated network access, electronic claims repricing, and claims and data management services to health care payers and provider networks. The PlanVista Solutions segment also includes our managing general underwriter business. Our third party administration segment, which we operate primarily through our HealthPlan Services, Inc., American Benefit Plan Administrators, Inc., and Southern Nevada Administrators, Inc. subsidiaries, provides marketing, distribution, and administration, and technology platform services for health care plans and other benefit programs. We function solely as a service provider generating fee-based income and do not assume any underwriting risk.
Restructuring expense for the years ended December 31, 2000 and 1999 was $2.2 million and $1.2 million, respectively. During the first quarter of 2000, we recorded a total of $0.8 million in restructuring costs in our third party administration segment for the closure of a facility in Merrimack, New Hampshire and other reductions in our workforce. The costs reflected lease terminations and termination of 75 employees in management and claims administration. During the fourth quarter of 2000, we recorded a total of $1.4 million in restructuring costs in our third party administration segment for rent on unused space in our Tampa, Florida and Honolulu, Hawaii offices and termination of 27 employees in claims administration. In 1999, we incurred $1.2 million of restructuring costs in our third party administration segment reflecting the termination of 65 employees in management, claims administration, and information systems associated with our fully insured workforce in Tampa, Florida.
Other expense for the year ended December 31, 2000, was $1.1 million. During the second quarter of 2000, we recorded legal, financial advisory, and other fees associated with the termination of our merger agreement with UICI (see Note 2 to the financial statements appearing elsewhere in this form 10-K).
Depreciation and amortization expense for the year ended December 31, 2000 increased $7.6 million to $18.3 million from $10.7 million in 1999. This increase is primarily attributable to a $7.7 million write-off of internally developed software, connected with our third party administration segment, that was previously capitalized. The charge related to client server technology and other functionality that was programmed for former customers. We decided to abandon the client server technology and no longer provide administration that formed a basis of other programming.
During the second quarter of 2000, we recorded an extraordinary loss of $1.0 million, net of taxes, related to our credit facility (see Note 9 to the Financial Statements appearing elsewhere in this Form 10-K). This loss represented $1.5 million of pretax non-interest fees and expenses connected with the prior facility, which were previously subject to amortization over five years.
Personnel expense for the year ended December 31, 1999 decreased $6.5 million, or 9.0%, to $65.5 million from $72.0 million in 1998. Personnel expense in our third party administration segment decreased $6.3 million due to a decrease in salaries and wages resulting from 168 fewer employees and less overtime and temporary help as we reduced our workforce pursuant to the revenue decreases in our fully insured business. We incurred an increase of $1.0 million related to the consolidation of our PlanVista Solutions segment. Corporate personnel expenses decreased $1.1 million primarily due to lower salaries and wages resulting from 42 fewer employees.
General and administrative expense for the year ended December 31, 1999 increased $1.2 million, or 3.1%, to $39.7 million from $38.5 million in 1998. Expenses in our third party administration segment decreased
$0.5 million. We recorded $4.7 million in 1999 for claims asserted by four former customers (see Note 12 to the financial statements appearing elsewhere in this Form 10-K). This increase was partially offset by favorable variances in office rent due to the closure of fully insured office facilities, telephone, and printing. Expenses in our PlanVista Solutions segment increased $1.7 million. This increase was attributable to the consolidation of PlanVista Solutions' financial results.
On June 8, 2000, we closed on our Second Amended and Restated Credit Agreement (the "Credit Agreement"). The Credit Agreement provided for a $73.8 million term loan facility, a $25.0 million revolving credit facility, and a letter of credit facility of up to $16.0 million available for current letters of credit. Under the term loan facility, a payment of $250,000 was required at closing and monthly for a two-month period commencing June 30, 2000 and repayments of $500,000 were required each month thereafter with additional repayments of $15.0 million on January 31 and July 31, 2001, and a final payment on August 31, 2001. The revolving credit facility has a final maturity date of August 31, 2001. Interest rates vary from the higher of (a) the Prime Rate or (b) the Federal Funds rate plus 1/2 of 1%, plus a margin of 1.5% to 3%. The Credit Agreement required an initial payment of 1.0% of the maximum amount of the facility, plus certain administrative fees and an annual commitment fee of .25% for letters of credit and unused commitments. We capitalized approximately $1.4 million of bank fees relative to the Credit Agreement. Under the loan terms, we must maintain certain financial covenants for revenue and EBITDA as defined in the Credit Agreement. We are also restricted in capital expenditures and are subject to repayment with proceeds of certain future activities such as sale of certain assets and public offerings. During the year ended December 31, 2000, we paid interest of $8.7 million and net principal of $29.1 million on the Credit Agreement. As of December 31, 2000, the balance outstanding under the Credit Agreement was $60.9 million. On June 29, 2000, September 12, 2000, September 19, 2000, October 19, 2000 and December 8, 2000, we signed Limited Waivers and Consents related to the disposition of assets and certain payment and other covenant requirements.
We expect to have completed a refinancing of the Credit Agreement or to have obtained new financing before the maturity of the Credit Agreement on August 31, 2001. While we expect to complete a refinancing of the Credit Agreement or to obtain new financing before the maturity of the Credit Agreement on August 31, 2001, there can be no assurance that we will obtain the necessary financing commitments by that date. In order to facilitate this refinancing or replacement financing, we expect to issue subordinated debt or equity.
On April 1, 2001, we entered into a definitive agreement to sell our third party administration segment and our managing general underwriter business to an affiliate of Sun Capital Partners, Inc., a Boca Raton, Florida-based merchant banking firm focused on leveraged buyouts, for approximately $30.0 million. The third party administration business includes our small group operations based in Tampa, Florida, as well as the Taft-Hartley businesses that operate through our American Benefit Plan Administrators, Inc. and Southern Nevada Administrators, Inc. subsidiaries based in El Monte, California, and Las Vegas, Nevada, respectively. The managing general underwriter business is Philadelphia-based Montgomery Management Corporation, which is part of our PlanVista Solutions segment. In connection with this non-cash transaction, Sun Capital Partners, Inc. will be assuming up to $40.0 million in working capital deficit connected with the acquired businesses and holding a long-term subordinated note from us of up to $10.0 million. The transaction is expected to close within between 30 and 60 days, subject to normal and customary closing conditions, completion of due diligence, financing, and the approval of our lenders.
On July 5, 2000, we sold our unemployment compensation and workers' compensation units for cash proceeds of $19.1 million, on September 15, 2000, we sold our Ohio workers' compensation managed care organization unit for cash proceeds of $3.5 million, and on October 26, 2000, we sold our self-funded business unit for cash proceeds of $11.0 million. The proceeds from the sale of these assets were used to reduce debt under the Credit Agreement.
On July 13, 2000, we paid $3.0 million to CENTRA Benefit Services, Inc. in settlement of the contingent consideration related to our purchase of CENTRA in 1998 (see Note 3 to the financial statements appearing elsewhere in this Form 10-K).
As of July 6, 2000, we paid $1.1 million related to our terminated merger with UICI in legal, financial advisory, and other fees.
During the year ended December 31, 2000, we paid $3.7 million in connection with the closure of CENTRA's Richardson, Texas office, which was announced in 1999, the Merrimack, New Hampshire office, which was announced in the first quarter of 2000, and the Framingham, Massachusetts office, which was announced in 1998.
Subject to completion of our debt refinancing and based upon current expectations, we believe that all consolidated operating and financing obligations for the next twelve months will be met from internally generated cash flow from operations, available cash, the closing on the sale of our third party administration and managing general underwriter units, or our anticipated issuance of equity or debt securities.