Molina terminates $550 million 364-day bridge facility commitment

By Wendy Van Sickle

Columbus, Ohio, Aug. 13 – Molina Healthcare, Inc. terminated on Monday its commitments under a commitment letter with SunTrust Bank as administrative agent that provided for a $550 million unsecured senior bridge facility with a term of 364 days, according to an 8-K filed with the Securities and Exchange Commission.

The commitment letter was dated Jan. 2.

The bridge facility would have been available to fund conversions of Molina’s 1.125% cash convertible senior notes due 2020, satisfy and/or refinance debt incurred to satisfy conversions of the convertible notes, repay or refinance Molina’s existing revolving credit facility and related expenses.

Molina said it terminated the commitment primarily because it decided it no longer needed the credit facility to satisfy the intended purposes.

No amounts were drawn under the bridge facility, and no fees were incurred in connection with its termination.

The Long Beach, Calif.-based health management organization works with Medicaid patients and other government assistance programs.

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