Magellan Health plans $400 million revolver, $350 million term loan

By Susanna Moon

Chicago, Sept. 15 – Magellan Health, Inc. has lined up a $400 million senior unsecured revolving credit facility and a $350 million senior unsecured term loan facility.

The company expects to enter into a credit agreement with MUFG as administrative agent, according to a 424B2 filing with the Securities and Exchange Commission.

Interest on the loans will be Libor plus 150 basis points. The unused fee on the revolver is 20 bps.

Proceeds will be used for working capital and general corporate purposes, including the payment of dividends, investments and the funding of acquisitions. Proceeds also will be used to repay outstanding loans and other obligations under the credit agreement dated July 23, 2014 with Citibank, NA as administrative agent, the credit agreement dated June 27, 2016 with BTMU as administrative agent and the credit agreement dated Jan. 10, 2017 with BTMU as administrative agent.

Magellan Health, formerly Magellan Health Services, Inc., is a health care management business based in Scottsdale, Ariz.

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