Molina Healthcare Announces Plan to Offer $500 Million Senior Notes due 2033

Molina Healthcare, Inc., a healthcare company based in Long Beach, California, disclosed in a Form 8-K filing to the U.S. Securities and Exchange Commission on November 13, 2024, its intention to privately offer $500 million aggregate principal amount of senior notes due 2033. The offering, subject to market conditions, is aimed at qualified institutional buyers under Rule 144A of the Securities Act of 1933 and certain persons outside the United States following Regulation S under the Securities Act. It is highlighted in the filing that these notes have not been registered under the Securities Act or any other jurisdiction’s securities laws.

This offering is not an invitation to purchase or a solicitation to offer to purchase the Notes and is not valid in any state or jurisdiction where such sale is prohibited. The filing underlines the use of non-GAAP financial measures by Molina Healthcare, including EBITDA and Adjusted EBITDA, as supplementary performance metrics. These measures are not mandated by generally accepted accounting principles in the U.S. but are believed to be beneficial for investors in comparing Molina Healthcare’s performance with that of other companies in the healthcare industry.

EBITDA is defined by the company as net income adjusted for interest, taxes, depreciation, and amortization, whereas Adjusted EBITDA includes additional adjustments for non-cash stock-based compensation expense, impairment charges, acquisition-related costs, and other non-cash or non-recurring charges. Despite their utility, EBITDA and Adjusted EBITDA are cautioned for their limitations as analytical tools and are not substitutes for GAAP measures. The figures provided in the filing demonstrate the company’s financial performance through these metrics for various periods.

The Form 8-K filing also included a statement that the information regarding EBITDA and Adjusted EBITDA does not constitute a filed document as per the Securities Exchange Act of 1934 and will not be included in any formal registration statement, except by explicit reference. Alongside the announcement of the notes offering, the company also issued a press release on November 13, 2024, the full text of which was attached as Exhibit 99.1 to the filing.

This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read Molina Healthcare’s 8K filing here.

About Molina Healthcare

Molina Healthcare, Inc provides managed healthcare services to low-income families and individuals under the Medicaid and Medicare programs and through the state insurance marketplaces. It operates in four segments: Medicaid, Medicare, Marketplace, and Other. The company served in across 19 states. The company was founded in 1980 and is headquartered in Long Beach, California.