Centene gets a new $1.45 billion delayed-draw term loan facility

By Sarah Lizee

Olympia, Wash., Sept. 11 – Centene Corp. amended and restated on Wednesday its existing credit agreement with Wells Fargo Bank, NA as administrative agent to provide a new $1.45 billion delayed-draw term loan facility in addition to the existing $2 billion multi-currency revolver, according to an 8-K filing with the Securities and Exchange Commission.

The term loan commitments will be available to Centene until the date that is 45 days after the effective date.

Centene may make a single drawing under the term loan facility.

The proceeds will be used to fund the redemption of the company’s 5 5/8% senior notes due 2021. Remaining proceeds will be used for general corporate purposes.

Interest is Libor plus 90 basis points to 200 bps, determined based on Centene’s total debt-to-EBITDA ratio.

Additionally, an upfront fee was payable on the effective date to each lender holding a commitment under the term loan facility equal to 12.5 bps.

The term loan facility will mature on Sept. 11, 2022.

The revolver’s interest and maturity is unchanged, the filing noted.

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

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