Centene enters $1.5 billion five-year restated revolving facility

By Wendy Van Sickle

Columbus, Ohio, Dec. 14 – Centene Corp. amended and restated its credit agreement with Wells Fargo Bank, NA as administrative agent on Thursday to provide for a $1.5 billion five-year unsecured multi-currency revolving credit facility, according to an 8-K filing with the Securities and Exchange Commission.

The credit facility has a $300 million sublimit for letters of credit, a $150 million sublimit for swingline loans and expansion feature that allows the company to request additional revolving or term loans up to the greater of $500 million and such amount that the total debt-to-EBITDA ratio would not exceed 3.5 times.

Borrowings will initially bear interest at Libor, Euribor or CDOR plus a margin ranging from 87.5 basis points to 187.5 bps, depending on Centene’s ratio of total debt to EBITDA.

There is a commitment fee ranging from 25 bps to 37.5 bps.

The credit facility matures on Dec. 14, 2022.

The company is a St. Louis-based managed care and specialty health care services provider.

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