Magellan Health gets $230 million revolver via Citi and Wells Fargo

By Sara Rosenberg

New York, Dec. 13 - Magellan Health Services Inc. closed on a new $230 million three-year senior secured revolving credit facility, according to an 8-K filed with the Securities and Exchange Commission on Tuesday.

Citigroup Global Markets Inc and Wells Fargo Securities LLC acted as the joint lead arrangers and bookrunners on the deal that was completed on Dec. 9, with Citibank the administrative agent.

Initial pricing on the revolver is Libor plus 200 basis points with a 37.5 bps unused fee. The spread can range from Libor plus 175 bps to 225 bps and the unused fee can range from 37.5 bps to 50 bps, based on leverage.

Covenants include a total leverage ratio test.

Magellan Health is an Avon, Conn.-based provider of managed behavioral health care, radiology benefits management, specialty pharmaceutical management, and Medicaid administration products and services.

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