Molina Healthcare Announces Pricing of Upsized Offering of $700 Million of Senior Notes Due 2022
November 05 2015 - 4:15PM
Business Wire
Molina Healthcare, Inc. (NYSE: MOH) (the “Company”) today
announced that on November 5, 2015 it priced $700 million aggregate
principal amount of its senior notes due 2022 (the “Notes”), in a
private offering to qualified institutional buyers pursuant to Rule
144A under the Securities Act of 1933, as amended (the “Securities
Act”) and to non-U.S. persons in accordance with Regulation S under
the Securities Act. The offering size was increased to $700 million
from the previously announced $500 million aggregate principal
amount.
The Notes will bear interest at the rate of 5.375% per year.
Interest will be payable semi-annually in arrears on May 15 and
November 15 of each year, commencing May 15, 2016, and will accrue
from November 10, 2015. The Notes will mature on November 15,
2022.
The Company estimates that the net proceeds from the sale of the
Notes will be approximately $688.5 million, after deducting
expenses payable by the Company. The Company intends to use the net
proceeds of this offering for general corporate purposes, which may
include the repayment of indebtedness, funding for future
acquisitions, capital expenditures, additions to working capital
and capital contributions to the Company’s health plan subsidiaries
to meet statutory requirements in new or existing states.
This press release shall not constitute an offer to sell or a
solicitation of an offer to purchase the Notes and shall not
constitute an offer, solicitation or sale in any state or
jurisdiction where such offer, solicitation or sale is
prohibited.
About Molina Healthcare
Molina Healthcare, Inc., a FORTUNE 500 company, provides managed
health care services under the Medicaid and Medicare programs and
through the state insurance marketplaces. Through our locally
operated health plans in 11 states across the nation and in the
Commonwealth of Puerto Rico, Molina serves approximately 3.5
million members. Dr. C. David Molina founded our company in 1980 as
a provider organization serving low-income families in Southern
California. Today, we continue his mission of providing high
quality and cost-effective health care to those who need it most.
For more information about Molina Healthcare, please visit our
website at molinahealthcare.com.
Cautionary Statement under the Private Securities Litigation
Reform Act: This press release contains “forward-looking
statements” that are subject to risks and uncertainties that may
cause actual results to differ materially from those expressed or
implied by such statements, including, without limitation, general
market conditions. A discussion of the risk factors facing the
Company can be found in its annual report on Form 10-K for the year
ended December 31, 2014, in its quarterly reports on Form 10-Q for
the quarters ended June 30, 2015 and September 30, 2015, in its
Form 8-K current reports, and in its other reports and filings with
the SEC. These reports can be accessed on the SEC’s website at
sec.gov. The Company undertakes no obligation to release any
revisions to any forward-looking statements.
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Molina Healthcare, Inc.Juan José Orellana, 562-435-3666, ext.
111143Investor Relations
Molina Healthcare (NYSE:MOH)
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