MOLINA HEALTHCARE, INC. (NYSE:MOH) Files An 8-K Entry into a Material Definitive Agreement
Item 1.01. Entry into a Material Definitive Agreement.
that certain Credit Agreement, dated as of June 12, 2015 (as
amended by that certain First Amendment to Credit Agreement dated
as of January 3, 2017, the Credit Agreement), by and among the
Company, the guarantors identified therein, the lenders
identified therein and SunTrust Bank, in its capacities as
Administrative Agent, Issuing Bank and Swingline Lender
(Administrative Agent), with respect to an unsecured revolving
credit facility in the aggregate principal amount of $500.0
million. A copy of the Credit Agreement was filed by the Company
with the Securities and Exchange Commission on January 3, 2017 as
Exhibit 10.1 to the Companys Current Report on Form 8-K.
Capitalized terms used herein and not otherwise defined have the
meanings given to them in the Credit Agreement, as amended by the
Second Amendment (as defined below).
Second Amendment to Credit Agreement (the Second Amendment) by
and among the Company, the Guarantors party thereto, the Lenders
party thereto and Administrative Agent. The Second Amendment
modifies the definition of Consolidated Adjusted EBITDA to (a)
allow the Company and its Restricted Subsidiaries to receive
credit for risk corridor payments owed to, but not received or
accrued by, the Company or any of its Restricted Subsidiaries
during 2016 and (b) account for the difference between the amount
of actual risk adjustment payments made or accrued by the Company
and its Restricted Subsidiaries during 2016 and the amount of
risk adjustment payments that would have been due by the Company
and its Restricted Subsidiaries under the federal governments
proposed 2018 risk adjustment payment transfer formula.
Lenders of the Companys inability, without giving effect to the
above-referenced modifications of the definition of Consolidated
Adjusted EBITDA, to comply with each of the financial covenants
set forth in Sections 6.1 and 6.2 of the Credit Agreement, for
the fiscal quarter ended December 31, 2016, which non-compliance
would have constituted Events of Default under Section 8.1(d) of
the Credit Agreement.
be complete and is subject to, and qualified in its entirety by,
the full text of the Second Amendment. A copy of the Second
Amendment is being filed as Exhibit 10.1 hereto and is
incorporated herein by reference.
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Exhibit No.
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Description
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10.1
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Second Amendment to Credit Agreement, dated as of
February 15, 2017, by and among Molina Healthcare, Inc., the Guarantors party thereto, the Lenders party thereto and SunTrust Bank, in its capacities as Administrative Agent, Issuing Bank and Swingline Lender. |
About MOLINA HEALTHCARE, INC. (NYSE:MOH)
Molina Healthcare, Inc. offers Medicaid-related solutions for low-income families and individuals, and assists government agencies in their administration of the Medicaid program. The Company operates through three segments: Health Plans, Molina Medicaid Solutions and Other. Its Health Plans segment consists of health plans in approximately 10 states and the Commonwealth of Puerto Rico, and its direct delivery business. Its direct delivery business consists of the operation of primary care clinics in various states in which it operates health plans. Its Molina Medicaid Solutions segment provides design, development, implementation (DDI) and business process outsourcing (BPO) solutions to state governments for their Medicaid management information systems (MMIS). The Other segment includes other businesses, such as its Pathways Health and Community Support LLC (Pathways) behavioral health and social services provider. MOLINA HEALTHCARE, INC. (NYSE:MOH) Recent Trading Information
MOLINA HEALTHCARE, INC. (NYSE:MOH) closed its last trading session down -0.95 at 48.23 with 4,318,933 shares trading hands.