8-KOther Events

CENTENE CORP 8-K Report, Corporate Update (Apr 2, 2020)

Filed April 2, 2020For Securities:CNC

Summary

Centene Corporation (CNC) announced on April 2, 2020, a decision to defer the redemption of its outstanding 4.75% senior notes due 2022. This action was originally planned to be funded by proceeds from the company's recent issuance of 3.375% senior notes due 2030. The deferral is a precautionary measure taken in response to the significant disruption and volatility observed in the global capital markets due to the spread of COVID-19.

Key Highlights

  • 1Centene has decided to postpone the redemption of its 4.75% senior notes due 2022.
  • 2The redemption was initially planned using proceeds from a recent debt offering (3.375% senior notes due 2030).
  • 3The decision to defer is attributed to the market volatility and disruptions caused by the COVID-19 pandemic.
  • 4Centene states it is currently in a strong liquidity position and has adequate access to capital.
  • 5The company believes deferring the redemption is a prudent step given the current economic uncertainty.
  • 6The 2022 notes will remain outstanding until a formal notice of redemption is issued.
  • 7Centene confirms it remains in compliance with the terms of its outstanding debt obligations.

Frequently Asked Questions

Centene deferred the redemption of its 2022 notes due to the significant disruption and volatility in the global capital markets caused by the spread of COVID-19. The company views this as a prudent measure during this uncertain economic period.

No, Centene explicitly states that it is currently in a strong liquidity position and believes it has adequate access to capital. The deferral is described as a precautionary measure, not a reflection of financial distress.

The 4.75% senior notes due 2022 will remain outstanding. Centene will only proceed with their redemption once the company delivers a formal notice of redemption. Until then, all terms of these notes continue to apply.

Centene affirms that it remains in compliance with the terms of its outstanding indebtedness, including the 2022 notes. The deferral is a strategic decision, not an indication of an inability to service its debt.