Molina Healthcare amends covenant, definition under revolving facility

By Marisa Wong

Morgantown, W.Va., May 22 – Molina Healthcare, Inc. entered into a third amendment to its existing $500 million unsecured revolving credit facility dated June 12, 2015 with SunTrust Bank as administrative agent, according to an 8-K filed Monday with the Securities and Exchange Commission.

The amendment modifies the credit agreement’s definition of specified cash to permit cash that is either subject to customary escrow arrangements or held in a segregated account to be netted from the credit agreement’s consolidated net leverage ratio if the use of the cash is limited to the repayment of other debt.

The amendment, completed on Friday, also adds a carve-out to the credit agreement’s negative pledge covenant to allow for the escrow arrangements and segregated accounts permitted in the definition of specified cash.

Molina separately announced on Monday that it plans to offer new senior notes, proceeds of which will be deposited into a segregated deposit account to be used to redeem or repurchase some existing convertible notes.

The Long Beach, Calif.-based health management organization works with Medicaid patients and other government assistance programs.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.