Molina Prices Stock Sale

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Managed care provider Molina Healthcare Inc. late Tuesday priced a more than 4 million share secondary offering at $27 each.

The Long Beach company, which specializes in Medicare patients, said the sale could net more than $102 million, or $111 million if underwriters exercise their full overallotment option.

Molina plans to use proceeds to pay back debt under its $200 million senior secured credit facility, which had a balance of $105 million as of July 30. The company currently has 25.8 million shares outstanding.

The offering price is slightly below the company’s Tuesday closing stock price of $27.54. Shares in midday trading Wednesday on the New York Stock Exchange were down 77 cents, or 2.8 percent, to $26.77.

The underwriters of the sale will have the option to buy an additional 600,000 shares. The company said of those shares, 250,000 will be offered by a stockholder, so proceeds from that sale will not go to the company.

Bank of America Merrill Lynch and J. P. Morgan Securities Inc. are the lead book-running managers for the offering, with UBS Securities LLC, Mitsubishi UFJ Securities, Inc. and Stifel Nicolaus & Co. Inc. as co-managers.

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