Molina upsizes revolver, plans to pay down term loan via new notes

By Sarah Lizee

Olympia, Wash., May 28 – Molina Healthcare, Inc. has upsized its revolving credit facility to $1 billion from $500 million, according to a news release from Moody’s Investors Service.

The facility is undrawn, Moody’s noted.

The company also plans to fully repay debt outstanding under its term loan facility and permanently reduce commitments using proceeds from new notes, according to a press release.

The company announced Thursday that it plans to privately offer $800 million of senior notes due 2028.

A portion of the net proceeds may also be used to fund the company’s pending Magellan Complete Care acquisition. If not, remaining proceeds will be used for general corporate purposes, which may include repayment of debt, 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.

Long Beach, Calif.-based Molina provides managed health-care services under the Medicaid and Medicare programs and through state insurance marketplaces.

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