S&P: Magellan notes rated BBB-

S&P said it affirmed the BBB- long-term corporate credit rating on Magellan Health Inc. and assigned a BBB- issue-level rating on the company's senior unsecured notes.

The outlook is stable.

The agency said Magellan is issuing $300 million in seven-year senior unsecured notes and entering into a credit agreement that provides for a $400 million five-year revolver (up from $250 million) and a $350 million five-year term loan.

It will use the proceeds to repay its existing secured term loan debt of $606 million and transaction costs.

“We believe MGLN may use remaining debt proceeds, cash on hand, and revolving borrowings to finance its pending $400 million acquisition of Senior Whole Health, expected to close by the first-quarter 2018,” S&P said in a news release.

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