By Paul A. Harris
Portland, Ore., Nov. 5 – Molina Healthcare, Inc. priced an upsized $700 million issue of seven-year senior bullet notes (Ba3/BB) at par to yield 5 3/8% on Thursday, according to a syndicate source.
The deal size was increased from $500 million.
The yield printed at the tight end of yield talk in the 5˝% area.
SunTrust Robinson Humphrey Inc. was the left bookrunner. BofA Merrill Lynch and UBS Investment Bank are the joint bookrunners.
The Long Beach, Calif.-based health management organization plans to use the proceeds for general corporate purposes, which may include debt repayment, funding future acquisitions and capital expenditures.
The additional proceeds resulting from the $200 million upsizing of the deal will be used for general corporate purposes, which may include the debt repayment, funding for future acquisitions, capital expenditures, additions to working capital and capital contributions to the company’s health plan subsidiaries.
| Issuer: | Molina Healthcare, Inc.
|
| Amount: | $700 million, increased from $500 million
|
| Maturity | Nov. 15, 2022
|
| Securities: | Senior notes
|
| Left bookrunner: | SunTrust Robinson Humphrey Inc.
|
| Joint bookrunners: | BofA Merrill Lynch, UBS Investment Bank
|
| Co-managers: | Barclays, MUFG, U.S. Bancorp Investments Inc., Wells Fargo Securities LLC
|
| Coupon: | 5 3/8%
|
| Price: | Par
|
| Yield: | 5 3/8%
|
| Call protection: | Par call three months prior to maturity, otherwise non-callable
|
| Trade date: | Nov. 5
|
| Settlement date: | Nov. 10
|
| Ratings: | Moody's: Ba3
|
| Standard & Poor's: BB
|
| Distribution: | Rule 144A with registration rights
|
| Price talk: | 5˝% area
|
| Marketing: | Roadshow
|
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