Molina Healthcare Announces Proposed Offering of $500 Million of Senior Notes Due 2022
November 02 2015 - 7:18AM
Business Wire
Molina Healthcare, Inc. (NYSE: MOH) (the “Company”) today
announced that it intends to privately offer, subject to market and
other conditions, $500 million aggregate principal amount of senior
notes due 2022 (the “Notes”). In connection with the offering, the
Company will agree, subject to certain conditions, to file a
registration statement relating to a registered offer to exchange
the Notes for new registered notes having substantially identical
terms to the Notes.
The Company will make the offering pursuant to an exemption
under the Securities Act of 1933, as amended (the “Securities
Act”). The initial purchasers will offer the Notes only to persons
reasonably believed to be “qualified institutional buyers” pursuant
to Rule 144A under the Securities Act and to certain persons
outside the United States in reliance on Regulation S under the
Securities Act.
The Notes will be guaranteed by each of the Company’s existing
and future direct and indirect domestic restricted subsidiaries
that guarantee the Company’s existing revolving credit facility. As
of the issue date of the Notes, the only subsidiaries of the
Company that will guarantee the Notes are Molina Information
Systems, LLC and Molina Medical Management, Inc. The interest rate,
offering price and other terms of the Notes will be determined by
negotiations between the Company and the initial purchasers. The
issuance of the Notes will be subject to customary closing
conditions.
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
report on Form 10-Q for the quarter ended 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
www.sec.gov. The Company undertakes no obligation to release any
revisions to any forward-looking statements.
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version on businesswire.com: http://www.businesswire.com/news/home/20151102005820/en/
Molina Healthcare, Inc.Juan José Orellana, 562-435-3666, ext.
111143Investor Relations
Molina Healthcare (NYSE:MOH)
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