Molina Healthcare Announces Closing of Offering of $750 Million of 3.875% Senior Notes Due 2032
November 16 2021 - 4:15PM
Business Wire
Molina Healthcare, Inc. (NYSE: MOH) (the “Company”) today
announced the closing of its previously announced offering of $750
million aggregate principal amount of 3.875% Senior Notes due 2032
(the “Notes”) sold in a private offering to individuals reasonably
believed to be “qualified institutional buyers” pursuant to Rule
144A under the Securities Act of 1933, as amended (the “Securities
Act”), and to certain persons outside the United States in reliance
on Regulation S under the Securities Act.
The Notes bear interest at a rate of 3.875% per annum. Interest
on the Notes is payable semi-annually in arrears on May 15 and
November 15 of each year, commencing May 15, 2022, and accrues from
November 16, 2021. The Notes will mature on May 16, 2032.
After deducting fees and expenses payable by the Company, the
net proceeds from the issuance and sale of the Notes was $741
million (the “Net Proceeds”). The Company intends to use
approximately $725 million of the Net Proceeds to redeem the entire
$700 million outstanding principal amount of its 5.375% senior
notes due 2022. The Company intends to use the remaining Net
Proceeds for general corporate purposes, which may include
repayment of indebtedness, share repurchases, funding for
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.
The Notes have not been registered under the Securities Act or
any state securities laws and may not be offered or sold within the
United States or to, or for the benefit of, a U.S. person (as
defined in Regulation S) except in transactions exempt from, or not
subject to, the registration requirements of the Securities
Act.
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
healthcare services under the Medicaid and Medicare programs and
through the state insurance marketplaces. Through its locally
operated health plans, Molina Healthcare served approximately 4.8
million members as of September 30, 2021. For more information
about Molina Healthcare, please visit molinahealthcare.com.
Safe Harbor Statement under the Private Securities Litigation
Reform Act of 1995
This press release contains “forward-looking statements,”
including statements related to the Company’s intended use of the
Net Proceeds, which are subject to risks and uncertainties.
Additional information regarding the risk factors to which the
Company is subject is provided in greater detail in its periodic
reports and filings with the Securities and Exchange Commission,
including its annual report on Form 10-K for the year ended
December 31, 2020 and in its quarterly reports on Form 10-Q for the
quarters ended March 31, 2021, June 30, 2021 and September 30,
2021. These reports can be accessed under the investor relations
tab of the Company’s website at molinahealthcare.com or on the
SEC’s website at www.sec.gov. Given these risks and uncertainties,
the Company can give no assurances that its forward-looking
statements will prove to be accurate, or that any other results or
events projected or contemplated by its forward-looking statements
will in fact occur, and it cautions investors not to place undue
reliance on these statements. All forward-looking statements in
this release represent the Company’s judgment as of the date
hereof, and, except as otherwise required by law, the Company
disclaims any obligation to update any forward-looking statements
to conform the statement to actual results or changes in its
expectations.
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version on businesswire.com: https://www.businesswire.com/news/home/20211116006338/en/
Investor Contact: Joseph Krocheski,
Joseph.Krocheski@molinahealthcare.com, 562-951-8382 Media
Contact: Caroline Zubieta,
Caroline.Zubieta@molinahealthcare.com, 562-951-1588
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