Molina Healthcare, Inc. Enters into Sixth Amendment to its Existing Credit Agreement
January 31, 2019 at 04:15 pm
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On January 31, 2019 (the Closing Date), Molina Healthcare, Inc. entered into a Sixth Amendment to its existing Credit Agreement dated as of June 12, 2015 (as amended, the Credit Agreement), by and among the company, the Guarantors party thereto, the Lenders party thereto, and SunTrust Bank, in its capacity as Administrative Agent. Capitalized terms used herein and not otherwise defined have the meanings given to them in the Credit Agreement. A delayed draw term loan facility in an aggregate principal amount of $600.0 million (the Term Loan), under which the Company may request up to ten advances, each in a minimum principal amount of $50.0 million, until eighteen months after the Closing Date (Delayed Draw Commitment Period"). The Term Loan will amortize in quarterly installments, commencing on the last day of the first fiscal quarter after the Delayed Draw Commitment Period, equal to the principal amount of the Term Loan outstanding on the last day of the Delayed Draw Commitment Period multiplied by an amortization payment percentage ranging from 1.25% to 2.50% (depending on the applicable fiscal quarter) for each fiscal quarter. The company will pay a delayed draw ticking fee in an amount equal to 37.5 basis points (0.375%) per annum of the undrawn amount of the Term Loan commencing on the Closing Date and continuing until the last day of the Delayed Draw Commitment Period, payable quarterly.
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. 
