Narrative
Full Description
Project narrative
On March 9, 2005, financial close was reached on a deal in which a syndicate of 13 banks — including Bank of Communications — entered into a $180 million USD syndicated loan agreement with Molina Healthcare, Inc. — a publicly traded American managed care company headquartered in Long Beach, California, that provides health insurance to individuals through government programs such as Medicaid and Medicare. The maturity of the loan is 5 years and the interest rate is LIBOR plus an applicable margin. The use of proceeds is for general corporate purposes. While Bank of Communications contributed to this loan, the following lenders also participated: Bank of America, N.A.; CIBC Inc.; Citicorp North America, Inc.; U.S. Bank National Association; UBS Loan Finance LLC; Harris Trust and Savings Bank; Société Générale; Union Bank of California, N.A.; East West Bank; Bank of the West; and Wells Fargo Bank, N.A. Specific contribution amounts for each lender are not disclosed.
Staff comments
1. The entirety of the 2005 loan contract can be accessed at https://www.sec.gov/Archives/edgar/data/1179929/000118143105015935/rrd72144_4363.htm. The dropbox link is accessible here: https://www.dropbox.com/scl/fi/f8opddkcxc9zuvklq9bci/Source_ID_216774.pdf?rlkey=dddovm7oebbh2all5pqlje9pg&st=8z58m89n&dl=0 2. Molina Healthcare, Inc. is an American health insurance provider based in Long Beach, California. The company focuses on providing managed health care services under the Medicaid and Medicare programs and has operations across multiple U.S. states. 3. AidData cannot estimate the interest rate because the interest margin is derived from the consolidated debt ratio in 2005, which is not available. But the interest ranges from LIBOR+1%-1.75%. 4. The individual contributions of the 13 lenders to this $180 million USD syndicated loan are not disclosed. For the time being, AidData has estimated the contribution of Bank of Communications by assuming that each lender contributed an equal amount ($13846153.8462 USD) to the loan syndicate.