Molina Healthcare Announces Proposed Offering of $800 Million of Senior Notes Due 2028
May 28 2020 - 8:00AM
Business Wire
Molina Healthcare, Inc. (NYSE: MOH) (the “Company”) today
announced that it intends to privately offer, subject to market and
other conditions, $800 million aggregate principal amount of senior
notes due 2028 (the “Notes”). The Company will make the offering
pursuant to an exemption under the Securities Act of 1933, as
amended (the “Securities Act”). The initial purchasers will offer
the Notes only to persons reasonably believed to be “qualified
institutional buyers” pursuant to Rule 144A under the Securities
Act and to certain persons outside the United States in reliance on
Regulation S under the Securities Act (“Regulation S”).
The Notes will not be guaranteed by any of the Company’s
subsidiaries at the time of issuance. The interest rate, offering
price and other terms of the Notes will be determined by
negotiations between the Company and the representative of the
initial purchasers. The issuance of the Notes will be subject to
customary closing conditions.
The Company intends to use the net proceeds of this offering to
fully repay indebtedness outstanding under its term loan facility
and permanently reduce commitments in respect thereof. The Company
may use a portion of the net proceeds to fund the pending Magellan
Complete Care (“MCC”) acquisition. If the Company determines not to
use a portion of the net proceeds to fund the pending MCC
acquisition, it intends to use the remaining net proceeds for
general corporate purposes, which may include repayment of
indebtedness, funding for acquisitions, capital expenditures,
additions to working capital and capital contributions to the
Company’s health plan subsidiaries to meet statutory requirements
in new or existing states.
The Notes have not been registered under the Securities Act or
any state securities laws and may not be offered or sold within the
United States or to, or for the benefit of, a U.S. person (as
defined in Regulation S) except in transactions exempt from, or not
subject to, the registration requirements of the Securities
Act.
This press release shall not constitute an offer to sell or a
solicitation of an offer to purchase the Notes and shall not
constitute an offer, solicitation or sale in any state or
jurisdiction where such offer, solicitation or sale is
prohibited.
About Molina Healthcare
Molina Healthcare, Inc., a FORTUNE 500 company, provides managed
healthcare services under the Medicaid and Medicare programs and
through the state insurance marketplaces. Through its locally
operated health plans, Molina Healthcare served approximately 3.4
million members as of March 31, 2020. For more information about
Molina Healthcare, please visit molinahealthcare.com.
Safe Harbor Statement under the Private Securities Litigation
Reform Act of 1995
This press release contains “forward-looking statements,”
including statements related to the Company’s offering of the Notes
and intended use of net proceeds of the offering, which are subject
to risks and uncertainties, including, without limitation, risks
related to whether the Company will consummate the offering of the
Notes on the expected terms, or at all, market and other general
economic conditions and whether the Company will be able to satisfy
the conditions required to close any sale of the Notes. Additional
information regarding the risk factors to which the Company is
subject is provided in greater detail in its periodic reports and
filings with the Securities and Exchange Commission, including its
annual report on Form 10-K for the year ended December 31, 2019 and
in its quarterly report on Form 10-Q for the quarter ended March
31, 2020. These reports can be accessed under the investor
relations tab of the Company’s website at molinahealthcare.com or
on the SEC’s website at sec.gov. Given these risks and
uncertainties, the Company can give no assurances that its
forward-looking statements will prove to be accurate, or that any
other results or events projected or contemplated by its
forward-looking statements will in fact occur, and it cautions
investors not to place undue reliance on these statements. All
forward-looking statements in this release represent the Company’s
judgment as of the date hereof, and, except as otherwise required
by law, the Company disclaims any obligation to update any
forward‑looking statements to conform the statement to actual
results or changes in its expectations.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20200528005498/en/
Investor Contact: Julie Trudell,
Julie.Trudell@molinahealthcare.com, 562-912-6720 Media
Contact: Caroline Zubieta,
Caroline.Zubieta@molinahealthcare.com, 562-951-1588
Molina Healthcare (NYSE:MOH)
Historical Stock Chart
From Apr 2024 to May 2024
Molina Healthcare (NYSE:MOH)
Historical Stock Chart
From May 2023 to May 2024