SCOTTSDALE, Ariz.--(BUSINESS WIRE)--
Magellan Health, Inc. (NASDAQ: MGLN) ("Magellan") announced today that
it has completed a public offering (the "Notes Offering") of $400.0
million aggregate principal amount of its 4.40 percent senior notes due
2024. The notes were issued on September 22, 2017 at a public offering
price of 99.809 percent, and bear interest at 4.40 percent. The interest
rate is subject to adjustment should the notes S&P rating fall below
BBB-. The first interest payment for the notes will be March 22, 2018.
The notes mature on September 22, 2024. The net proceeds of the Notes
Offering were approximately $394.7 million after deducting underwriting
discounts and estimated offering expenses.
J.P. Morgan Securities LLC, MUFG Securities Americas Inc. and Wells
Fargo Securities, LLC were the joint book-running managers for the Notes
Magellan also announced a new senior unsecured credit agreement (the
"2017 Credit Agreement") with The Bank of Tokyo-Mitsubishi UFJ, Ltd. as
administrative agent. The 2017 Credit Agreement will provide a $400.0
million senior unsecured revolving credit facility, and a $350.0 million
senior unsecured five year term loan. Magellan has the option to borrow
in base rate loans or Eurodollar rate loans at its discretion. The
borrowing margin is subject to adjustment based on Magellan's debt
rating as provided by certain rating agencies. Magellan has no immediate
plans to draw against the revolver.
Chief Financial Officer Jonathan Rubin said, "We are pleased with the
execution of our new capital structure, which we believe will provide us
with a good mix of fixed and variable rate debt, as well as the
flexibility to meet our near term financing commitments and cash flow
needs." Magellan used the combined net proceeds of the Notes Offering
and the term loan for working capital and general corporate purposes,
and the termination and repayment of its obligations under its existing
credit facilities expiring on July 23, 2019 and December 29, 2017.
The Notes Offering was made pursuant to Magellan's shelf registration
statement previously filed with the Securities and Exchange Commission
("SEC") on August 31, 2017. The Notes Offering was made by means of a
prospectus supplement and accompanying prospectus. Copies of these
documents may be obtained by visiting EDGAR on the SEC website at www.sec.gov.
Alternatively, you may request copies of these materials by contacting
J.P. Morgan Securities LLC collect at 1-212-834-4533, MUFG Securities
Americas Inc. at 1-877-649-6848 or Wells Fargo Securities, LLC at
This press release does not constitute an offer to sell or the
solicitation of an offer to buy the notes, nor shall there be any sale
of these notes in any jurisdiction in which such offer, solicitation or
sale would be unlawful prior to registration or qualification under the
securities laws of any such jurisdiction.
About Magellan Health: Magellan Health, Inc. is a leader in
managing the fastest growing, most complex areas of health, including
special populations, complete pharmacy benefits and other specialty
areas of healthcare. Magellan supports innovative ways of accessing
better health through technology, while remaining focused on the
critical personal relationships that are necessary to achieve a healthy,
vibrant life. Magellan's customers include health plans and other
managed care organizations, employers, labor unions, various military
and governmental agencies and third-party administrators.
This release contains forward-looking
statements within the meaning of the Securities Exchange Act of 1934 and
the Securities Act of 1933, as amended, which involve a number of risks
and uncertainties. All statements, other than statements of historical
information provided herein, may be deemed to be forward-looking
statements. These statements are based on management's analysis,
judgment, belief and expectation only as of the date hereof, and are
subject to uncertainty and changes in circumstances. Without limiting
the foregoing, the words "believes," "anticipates," "plans," "expects,"
"may," "should," "could," "estimate," "intend" and other similar
expressions are intended to identify forward-looking statements. Actual
results could differ materially due to, among other things, the possible
election of certain of Magellan's customers to manage the healthcare
services of their members directly; changes in rates paid to and/or by
Magellan by customers and/or providers; higher utilization of health
care services by Magellan's risk members; delays, higher costs or
inability to implement new business or other Magellan initiatives; the
impact of changes in the contracting model for Medicaid contracts;
termination or non-renewal of customer contracts; the impact of new or
amended laws or regulations; governmental inquiries; litigation;
competition; operational issues; health care reform; and general
business conditions. Additional factors that could cause actual results
to differ materially from those reflected in the forward-looking
statements include, but are not limited to, the risks discussed in the
"Risk Factors" section included within Magellan's Annual Report on
Form 10-K for the year ended December 31, 2016, filed with the
Securities and Exchange Commission on February 24, 2017, and Magellan's
subsequent Quarterly Reports on Form 10-Q filed during 2017. Readers are
cautioned not to place undue reliance on these forward-looking
statements. Magellan undertakes no obligation to publicly revise these
forward-looking statements to reflect events or circumstances that arise
after the date of this release.
View source version on businesswire.com: http://www.businesswire.com/news/home/20170925005422/en/
Magellan Health, Inc.
Colleen Flanagan Johnson,
Source: Magellan Health, Inc.
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