Magellan Health amends loan to cut term loan rates, credit-linked facility commitment fee

By Sara Rosenberg

New York, Oct. 29 - Magellan Health Services Inc. amended its credit facility to lower the interest rate on its term loans and reduce the commitment fee on its $50 million credit-linked facility, each by 125 basis points, according to a company news release.

Furthermore, the amendment eliminates some prepayment requirements and modifies restrictions on Magellan's ability to repurchase or refinance its senior notes, make investments or incur letters-of-credit debt.

"Magellan's ability to successfully amend the credit agreement is testament to the strength of our balance sheet. With the interest rate savings and additional flexibility it affords, Magellan's financial position is stronger yet, which positions the company even more effectively for long-term success," said Steven J. Shulman, chairman and chief executive officer, in the release.

The amendment was completed sometime during the week of Oct. 25.

Magellan Health is a Farmington, Conn.-based provider of behavioral health care treatment services.

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