Molina amends revolver, increasing size, lowering pricing, extending tenor

By Sara Rosenberg

New York, May 31 - Molina Healthcare, Inc. amended its revolving credit facility, increasing the size to $200 million from $180 million, lowering pricing and extending the maturity to May 24, 2012, according to an 8-K filed with the Securities and Exchange Commission Thursday.

Pricing on the loan is now set at Libor plus 75 basis points, with a commitment fee of 15 bps. Pricing can range from Libor plus 75 bps to 175 bps and the commitment fee can range from 15 bps to 27.5 bps, based on leverage.

In addition, the amendment revised certain covenant baskets under the revolver, including replacing the $75 million unsecured subordinated indebtedness basket with a $250 million unsecured senior indebtedness basket, increasing the baskets for restricted payments, permitted acquisitions and capital expenditures, and raising the maximum permitted consolidated leverage ratio in most instances to 2.75 to 1.0.

There is a $50 million accordion feature.

The amendment was completed on May 25.

Bank of America is the administrative agent on the deal.

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

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