Molina to repay bank debt with convertibles proceeds

By Sara Rosenberg

New York, Oct. 3 - Molina Healthcare Inc. is planning on repaying the amounts outstanding under its credit facility using a portion of the proceeds from a proposed $150 million convertible senior notes offering, according to a 424B3 filed with the Securities and Exchange Commission Wednesday.

Remaining proceeds will be used to fund the acquisition of Mercy CarePlus, a Medicaid managed care company in Missouri, to pursue acquisitions and expansions of health plans and contracts for government-sponsored health programs in existing and new markets, and for general corporate purposes including working capital.

Molina is a Long Beach, Calif.-based multi-state managed care organization.

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