Magellan Health (MGLN) has completed a public offering of $400 million aggregate principal amount of its 4.40% senior notes due 2024.
The notes were issued on Sept. 22 at a public offering price of 99.809%, and bear interest at 4.40%. The interest rate is subject to adjustment should the notes S&P rating fall below BBB-. The first interest payment for the notes will be March 22, 2018, and the notes mature on Sept. 22, 2024. The net proceeds were approximately $394.7 million after deducting underwriting discounts and estimated offering expenses.
Magellan also announced a new senior unsecured credit agreement with The Bank of Tokyo-Mitsubishi UFJ Ltd. as administrative agent. The 2017 Credit Agreement will provide a $400.0 million senior unsecured revolving credit facility, and a $350.0 million senior unsecured five-year term loan.