WellCare Health Plans, Inc. (“WellCare”) (NYSE: WCG) today announced that it has entered into an Amended and Restated Credit Agreement for its Revolving Credit Facility (“Credit Agreement”). The company plans on using this upsized facility to support its long-term growth plans, including, but not limited to, its pending acquisition of Meridian Health Plan of Michigan, Inc., Meridian Health Plan of Illinois, Inc. and MeridianRx, LLC (“Meridian”), as well as for general corporate purposes.
The Credit Agreement provides for a $1.3 billion revolving credit facility maturing in July 2023. An expansion feature is included in the Credit Agreement that allows WellCare the opportunity to increase the facility by an additional $500 million. The Credit Agreement contains customary covenants and restrictions that have been improved in order to provide flexibility to support company growth. As of July 23, 2018, there are no borrowings outstanding under the Credit Agreement.
JPMorgan Chase Bank, N.A. acted as the Administrative Agent. SunTrust Bank, Bank of America, N.A., MUFG Bank, LTD., and Wells Fargo Bank, N.A., acted as the Co-Syndication Agents. Goldman Sachs Bank USA and U.S. Bank N.A. acted as the Co-Documentation Agents. JPMorgan Chase Bank, N.A., SunTrust Robinson Humphrey, Inc., Merrill Lynch, Pierce, Fenner & Smith Inc., MUFG Bank, LTD., and Wells Fargo Securities, LLC acted as Joint Bookrunners and Joint Lead Arrangers.