MOLINA HEALTHCARE, INC.MOH
MOLINA HEALTHCARE, INC. Debt Disclosure
Debt
Contractual maturities of debt, as of December 31, 2024, are illustrated in the following table. All amounts represent the principal amounts of the debt instruments outstanding.
| Total | 2025 | 2026 | 2027 | 2028 | 2029 | Thereafter | |||||||||||||||||||||||||||||||||||
| (In millions) | |||||||||||||||||||||||||||||||||||||||||
4.375% Notes due 2028 | $ | 800 | $ | — | $ | — | $ | — | $ | 800 | $ | — | $ | — | |||||||||||||||||||||||||||
3.875% Notes due 2030 | 650 | — | — | — | — | — | 650 | ||||||||||||||||||||||||||||||||||
3.875% Notes due 2032 | 750 | — | — | — | — | — | 750 | ||||||||||||||||||||||||||||||||||
6.250% Notes due 2033 | 750 | — | — | — | — | — | 750 | ||||||||||||||||||||||||||||||||||
| Total | $ | 2,950 | $ | — | $ | — | $ | — | $ | 800 | $ | — | $ | 2,150 | |||||||||||||||||||||||||||
The following table summarizes our outstanding debt obligations, all of which are non-current as of the dates reported below:
| December 31, | |||||||||||
| 2024 | 2023 | ||||||||||
| (In millions) | |||||||||||
| Non-current long-term debt: | |||||||||||
4.375% Notes due 2028 | $ | 800 | $ | 800 | |||||||
3.875% Notes due 2030 | 650 | 650 | |||||||||
3.875% Notes due 2032 | 750 | 750 | |||||||||
6.250% Notes due 2033 | 750 | — | |||||||||
| Deferred debt issuance costs | (27) | (20) | |||||||||
| Total | $ | 2,923 | $ | 2,180 | |||||||
Credit Agreement
On September 20, 2024, we entered into a Second Amendment to our credit agreement (as amended, the “Credit Agreement”) which includes an increase in available commitments under the revolving credit facility (“Credit Facility”) to $1.25 billion, among other provisions. The Credit Agreement has a term of five years, and all amounts outstanding will be due and payable on September 20, 2029. Borrowings under the Credit Agreement bear interest based, at our election, on a base rate or other defined rate, plus in each case, the applicable margin. In addition to interest payable on the principal amount of indebtedness outstanding from time to time under the Credit Agreement, we are required to pay a quarterly commitment fee. We have other relationships, including financial advisory and banking, with some parties to the Credit Agreement.
The Credit Agreement contains customary non-financial and financial covenants. As of December 31, 2024, we were in compliance with all financial and non-financial covenants under the Credit Agreement. As of December 31, 2024, no amounts were outstanding under the Credit Facility.
Senior Notes
Our senior notes are described below. Each of these notes are senior unsecured obligations of the Parent corporation, Molina Healthcare, Inc., and rank equally in right of payment with all existing and future senior debt, and senior to all existing and future subordinated debt of Molina Healthcare, Inc. In addition, each of the indentures governing the senior notes contain customary non-financial covenants and change of control provisions. As of December 31, 2024, we were in compliance with all non-financial covenants in the indentures governing the senior notes.
The indentures governing the senior notes contain cross-default provisions that are triggered upon default by us or any of our subsidiaries on any indebtedness in excess of the amount specified in the applicable indenture.
4.375% Notes due 2028. We have $800 million aggregate principal amount of senior notes (the “4.375% Notes”) outstanding as of December 31, 2024, which are due June 15, 2028, unless earlier redeemed. Interest, at a rate of 4.375% per annum, is payable semiannually in arrears on June 15 and December 15.
3.875% Notes due 2030. We have $650 million aggregate principal amount of senior notes (the “3.875% Notes due 2030”) outstanding as of December 31, 2024, which are due November 15, 2030, unless earlier redeemed. Interest, at a rate of 3.875% per annum, is payable semiannually in arrears on May 15 and November 15.
3.875% Notes due 2032. We have $750 million aggregate principal amount of senior notes (the “3.875% Notes due 2032”) outstanding as of December 31, 2024, which are due May 15, 2032, unless earlier redeemed. Interest, at a rate of 3.875% per annum, is payable semiannually in arrears on May 15 and November 15.
6.250% Notes due 2033. On November 18, 2024, we completed the private offering of $750 million aggregate principal amount of senior notes (the “6.250% Notes due 2033”), which are due January 15, 2033, unless earlier redeemed. The 6.250% Notes due 2033 contain optional early redemption provisions, with redemption prices in excess of par. Interest, at a rate of 6.250% per annum, is payable semiannually in arrears on January 15 and July 15 of each year, commencing July 15, 2025. Deferred issuance costs amounted to $10 million.Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2024 | Feb 11, 2025 | Showing above |
| 2023 | Feb 13, 2024 | |
| 2022 | Feb 13, 2023 | |
| 2021 | Feb 14, 2022 | |
| 2020 | Feb 16, 2021 | |
| 2019 | Feb 14, 2020 | |
| 2018 | Feb 19, 2019 | |
| 2017 | Mar 1, 2018 | |
| 2016 | Mar 1, 2017 | |
| 2015 | Feb 26, 2016 | |
About Debt Disclosures
Debt disclosures detail a company's borrowing structure — the types of instruments, interest rates, maturity schedule, and covenant restrictions that define its financial obligations and flexibility. This section is essential for assessing refinancing risk, interest rate exposure, and the margin of safety against financial distress.
Key signals: the maturity schedule reveals concentration risk — large maturities within 1-2 years during tight credit markets can force dilutive refinancing or asset sales. Compare the fair value of debt against carrying amount to gauge whether the market views the company's credit risk differently than the balance sheet suggests. Watch covenant compliance disclosures for tightening cushions, especially leverage and interest coverage ratios. Variable-rate debt exposure quantifies sensitivity to interest rate changes. Secured versus unsecured mix affects recovery rates and future borrowing capacity. Compare net debt-to-EBITDA against industry peers and covenant limits to assess financial health.