Molina Healthcare, Inc. Completes Private Offering of $750.0 Million Aggregate Principal Amount of the Company?s 3.875% Senior Notes Due 2032
November 16, 2021 at 04:35 pm EST
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On November 16, 2021 Molina Healthcare, Inc. completed the private offering of $750.0 million aggregate principal amount of the Company?s 3.875% Senior Notes due 2032 (the ?Notes?) pursuant to an indenture, dated as of the Settlement Date, by and between the Company and U.S. Bank National Association, as trustee. The Notes bear interest at the rate of 3.875% per year. Interest on the Notes is payable semi-annually in arrears on May 15 and November 15 of each year, commencing May 15, 2022. Interest accrues from the Settlement Date. The Notes will mature on May 15, 2032. The Notes are senior unsecured obligations of the Company and rank pari passu in right of payment with all existing and future senior debt and senior to all existing and future subordinated debt of the Company. The Notes are effectively subordinated to all existing and future secured debt of the Company to the extent of the value of the assets securing such debt. In addition, the Notes are structurally subordinated to all indebtedness and other liabilities, including trade payables, of the Company?s subsidiaries. Each of the Company?s subsidiaries that guarantees any of the Company?s indebtedness under its credit agreement in the future will be required to guarantee the Notes on a pari passu basis. The Notes will not initially be guaranteed by any of the Company?s subsidiaries. The Notes are redeemable on and after February 15, 2032 at par plus accrued and unpaid interest, if any, to, but not including, the redemption date. In addition, the Company may redeem some or all of the Notes prior to February 15, 2032 at a redemption price equal to 100% of the principal amount of the Notes redeemed plus accrued and unpaid interest, if any, to, but not including, the redemption date, plus an applicable ?make-whole premium?.
Molina Healthcare, Inc. specializes in the provision of health care services managed within the Medicaid and Medicare health insurance and coverage programs, and through the health insurance marketplace, financed by the States and the Federal Government of the United States. Revenues break down by activity as follows:
- Health care services within the Medicaid program (80.9%): services for low-income individuals, families and people with disabilities;
- health care services within the Medicare program (12.9%): services for the elderly and people with certain diseases, covered by the Medicare health insurance program;
- operating a health insurance marketplace (6.2%; Marketplace): a platform for offering health insurance plans, and allowing members of the Medicaid program, whose rising incomes have taken them out of eligibility, to purchase federally subsidized health insurance policies. The group also offers virtual care services.
At the end of 2023, Molina Healthcare, Inc. had approximately 5 million members broken down by program between Medicaid (4.5 million members), Medicare (0.2 million) and Marketplace (0.5 million).
All revenues are earned in the United States.
MOLINA HEALTHCARE, INC. 
