Molina Healthcare Announces Closing of Offering of $650 Million of 3.875% Senior Notes Due 2030
Molina Healthcare, Inc. (NYSE: MOH) has successfully closed a private offering of $650 million in 3.875% Senior Notes due 2030. The company will use approximately $346 million of the net proceeds to redeem its existing 4.875% senior notes due 2025, alongside related fees. The remaining funds will support general corporate purposes, including share repurchases and capital contributions to its health plan subsidiaries. The Notes will pay interest semi-annually and mature on November 15, 2030.
- Successfully closed $650 million senior notes offering.
- Net proceeds of $641 million will improve financial flexibility.
- Redeeming 4.875% senior notes indicates high debt levels.
- Remaining proceeds tied to uncertain corporate purposes.
LONG BEACH, Calif.--(BUSINESS WIRE)--Molina Healthcare, Inc. (NYSE: MOH) (the “Company”) today announced the closing of its previously announced offering of
The Notes bear interest at a rate of
After deducting fees and expenses payable by the Company, the net proceeds from the issuance and sale of the Notes was
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 health care services under the Medicaid and Medicare programs and through the state insurance marketplaces. Through its locally operated health plans, Molina Healthcare served approximately 4.0 million members as of September 30, 2020. For more information about Molina Healthcare, please visit www.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, 2019 and in its quarterly reports on Form 10-Q for the quarters ended March 31, 2020, June 30, 2020 and September 30, 2020. These reports can be accessed under the investor relations tab of the Company’s website at www.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.
