8-KMaterial AgreementsFinancial EventsExhibits & Filings

CENTENE CORP 8-K Report, Material Agreement (Nov 2, 2012)

Filed November 2, 2012For Securities:CNC

Summary

Centene Corporation (CNC) filed an 8-K on November 2, 2012, to report an amendment to its existing Credit Agreement, dated January 31, 2011, referred to as the Revolving Credit Facility. This amendment primarily modifies the definition of "Senior Notes" to encompass up to $400,000,000 in aggregate principal amount of its 5.75% senior notes due 2017. This filing indicates a strategic financial move by Centene to potentially incorporate new debt issuance within its existing credit structure. Investors should note that while this amendment doesn't signal immediate financial distress, it represents a change in the company's debt covenants and overall financial leverage. The inclusion of specific senior notes suggests planned or ongoing financing activities that could impact the company's capital structure and future interest expenses.

Key Highlights

  • 1Centene Corporation amended its Revolving Credit Facility dated January 31, 2011.
  • 2The amendment, dated November 2, 2012, was executed with various financial institutions and Barclays Bank PLC as administrative agent.
  • 3The core change involves updating the definition of "Senior Notes" within the credit agreement.
  • 4The updated definition now includes up to $400,000,000 in aggregate principal amount of 5.75% senior notes due 2017.
  • 5This amendment likely facilitates the issuance or inclusion of these specific senior notes under the existing credit facility.
  • 6The filing suggests changes to Centene's debt structure and financial obligations.

Frequently Asked Questions

The main purpose of this 8-K filing is to inform investors and the public about a material amendment to Centene Corporation's Revolving Credit Facility. This amendment specifically alters the definition of "Senior Notes" to accommodate a new issuance or inclusion of up to $400 million in 5.75% senior notes due 2017.

The inclusion of new senior notes under its credit facility suggests that Centene is potentially raising additional capital or restructuring its debt. This could be for operational needs, expansion, or refinancing. While not inherently negative, investors should monitor the total debt levels and the company's ability to service this new debt, as it increases financial leverage.

This amendment primarily changes the terms of Centene's debt agreements. For investors, the immediate impact is informational, indicating a shift in the company's capital structure. The actual financial impact will depend on how these new senior notes are utilized (e.g., for growth initiatives versus covering existing obligations) and Centene's overall financial performance in managing its debt and interest expenses.