LONG BEACH, Calif.–(BUSINESS WIRE)–Molina Healthcare, Inc. (NYSE: MOH) (the “Company”) today announced that
on November 5, 2015 it priced $700 million aggregate principal amount of
its senior notes due 2022 (the “Notes”), in a private offering to
qualified institutional buyers pursuant to Rule 144A under the
Securities Act of 1933, as amended (the “Securities Act”) and to
non-U.S. persons in accordance with Regulation S under the Securities
Act. The offering size was increased to $700 million from the previously
announced $500 million aggregate principal amount.
The Notes will bear interest at the rate of 5.375% per year. Interest
will be payable semi-annually in arrears on May 15 and November 15 of
each year, commencing May 15, 2016, and will accrue from November 10,
2015. The Notes will mature on November 15, 2022.
The Company estimates that the net proceeds from the sale of the Notes
will be approximately $688.5 million, after deducting expenses payable
by the Company. 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
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 reports on Form 10-Q for the quarters ended June 30, 2015 and
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 sec.gov.
The Company undertakes no obligation to release any revisions to any
Molina Healthcare, Inc.
Juan José Orellana, 562-435-3666, ext.