Magellan Health gets $500 million five-year term loan and revolver

By Susanna Moon

Chicago, July 25 – Magellan Health, Inc. obtained a $500 million five-year credit facility, consisting of a $250 million term loan and a $250 million revolving credit facility, according to a 10-Q filing with the Securities and Exchange Commission.

Interest on the loans is Libor plus 150 basis points, with the spread adjusted based on leverage.

Interest on letters of credit will be 1.625%. The unused fee is 20 bps.

The revolver has a sublimit of up to $70 million for the issuance of letters of credit.

The company entered into the credit agreement on Wednesday, with Magellan Rx Management, Inc. as the borrower. The facility is guaranteed by substantially all of the company’s non-regulated subsidiaries.

The facility matures on July 23, 2019 with a one-year extension option.

Magellan Health Inc, formerly Magellan Health Services Inc., is an Avon, Conn., specialty managed health care business.

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