Molina Healthcare, Inc. (MOH, Financial) has announced its intention to privately offer $500 million in aggregate principal amount of senior notes due 2033. This strategic financial move, subject to market conditions, aims to bolster the company's financial standing and provide additional capital for future endeavors.
The senior notes will be offered exclusively to qualified institutional buyers under Rule 144A of the Securities Act of 1933 and to certain individuals outside the United States in compliance with Regulation S. It is important to note that these notes have not been registered under the Securities Act or any other jurisdiction's securities laws, and therefore, cannot be offered or sold in the United States without an applicable exemption from registration requirements.
In conjunction with the offering, Molina Healthcare has provided potential investors with non-GAAP financial measures, including EBITDA and Adjusted EBITDA. These measures serve as supplemental indicators of the company's performance, offering a comparative analysis against other public companies in the healthcare sector. However, the company emphasizes that these non-GAAP measures have limitations and should not replace GAAP results.
EBITDA is defined by Molina Healthcare as net income adjusted for interest, taxes, depreciation, and amortization. Adjusted EBITDA further refines this by accounting for non-cash stock-based compensation, impairment charges, acquisition-related costs, and other non-cash or non-recurring charges. Despite their utility, these measures should not be viewed as indicators of discretionary cash available for business growth investments.
This announcement reflects Molina Healthcare's proactive approach to managing its financial resources and underscores its commitment to maintaining a robust financial framework to support its strategic objectives.
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