Molina Healthcare to sell $650 million 10-year notes on Monday

By Abigail W. Adams

Portland, Me., Nov. 2 – Molina Healthcare Inc. plans to price $650 million of 10-year bullet notes (Ba3/BB-) in a Monday drive-by, according to a market source.

BofA Securities Inc., Truist Securities Inc., Barclays, Deutsche Bank Securities Inc., J.P. Morgan Securities LLC, MUFG and Wells Fargo Securities LLC are joint bookrunners for the Rule 144A and Regulation S offering.

Citizens Capital Markets Inc., Fifth Third Securities Inc., Huntington Investment Co. and U.S. Bancorp Investments Inc. are co-managers.

The notes have a poison put at 101.

Approximately $346 million of net proceeds will be used to redeem the 4 7/8% senior notes due 2025 with remaining proceeds to be used for general corporate purposes, which may include debt repayment, share repurchases, acquisitions, capital expenditures or contributions to the company’s health plan subsidiaries.

Molina Healthcare is a Long Beach, Calif.-based managed health care service provider.

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