Molina Healthcare Offers Senior Notes

Molina Healthcare, a provider of managed health care services, said pre-market Monday that it seeks to privately offer $330 million of senior notes due 2025. The initial purchasers will offer the notes only to persons reasonably believed to be “qualified institutional buyers.”

The notes will be guaranteed by each of the company’s existing and future direct and indirect domestic unregulated subsidiaries that guarantee the company’s existing revolving credit facility. As of the issue date of the notes, the only units of the company that will guarantee the notes are Molina Information Systems, dba Molina Medicaid Solutions, Molina Pathways, and Pathways Health and Community Support. The interest rate, offering price and other terms of the notes will be determined by negotiations between the company and the representative of the initial purchasers.

The net proceeds from the issuance and sale of the notes will be used, among others, to redeem any portion of the company’s 1.625% convertible senior notes due 2044, and/or to buy back all or any portion of the 1.625% convertible notes.

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