Centene amended its existing credit agreement with Wells Fargo Bank as administrative agent.
According to a related 8-K filing, the $2 billion multi-currency revolving facility includes a $300 million sub-limit for letters of credit and a $200 million sub-limit for swingline loans.
The credit agreement allows for additional incremental loans up to the greater of (x) $500 million and (y) such other amount such that after giving pro forma effect to the incurrence of such amounts and the use of proceeds thereof the total debt-to-EBITDA ratio would not exceed 3.50 to 1.00, by way of a new term loan facility or an increase in the revolving commitments, subject to satisfaction of certain conditions.
At Centene’s option, borrowings will bear interest at LIBOR, EURIBOR, CDOR, BBR or base rates plus, in each case, an applicable margin. Applicable margins for LIBOR, EURIBOR, CDOR and BBR range from 87.5 to 187.5 basis points and applicable margins for base rate loans range from 0.0 to 87.5 basis points, in each case, determined based on Centene’s total debt-to-EBITDA ratio. Additionally, there is a facility fee ranging from 15 to 27.5 basis points on the commitments of the lenders and a letter of credit fee ranging from 87.5 to 187.5 basis points on letters of credit issued, in each case, determined based on Centene’s total debt-to-EBITDA ratio. The revolving credit facility will mature on May 7, 2024, unless otherwise extended.
