Centene Corporation Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

Debt

Debt

3 Months Ended

Mar. 31, 2021

Debt consists of the following ($ in millions):


	March 31, 2021		December 31, 2020
$2,200 million 4.75% Senior Notes, due January 15, 2025	$	—	$	2,230
$1,800 million 5.375% Senior Notes, due June 1, 2026	1,800		1,800
$750 million 5.375% Senior Notes due August 15, 2026	792		794
$2,500 million 4.25% Senior Notes due December 15, 2027	2,483		2,482
$3,500 million 4.625% Senior Notes due December 15, 2029	3,500		3,500
$2,000 million 3.375% Senior Notes due February 15, 2030	2,000		2,000
$2,200 million 3.00% Senior Notes due October 15, 2030	2,200		2,200
$2,200 million 2.50% Senior Notes due March 1, 2031	2,200		—

Total senior notes	14,975		15,006
Term loan facility	1,450		1,450
Revolving credit agreement	152		97
Mortgage notes payable	—		50
Construction loan payable	184		180
Finance leases and other	156		153
Debt issuance costs	(160)		(157)
Total debt	16,757		16,779
Less current portion	(62)		(97)
Long-term debt	$	16,695	$	16,682

Senior Notes

In February 2021, the Company issued $2,200 million 2.50% Senior Notes due 2031 (the 2031 Notes). In conjunction with the 2031 Notes offering, the Company completed a tender offer (the Tender Offer) to purchase for cash, subject to certain conditions, any and all of the outstanding aggregate principal amount of the $2,200 million 4.75% Senior Notes due 2025 (the 2025 Notes). The Company used the net proceeds from the 2031 Notes, together with available cash on hand, to fund the purchase price for the 2025 Notes accepted for purchase in the Tender Offer (approximately 36% of the aggregate principal amount outstanding) and used the remaining proceeds to redeem any of the 2025 Notes that remained outstanding following the Tender Offer, including all premiums, accrued interest and costs and expenses related to the redemption. The Company recognized a pre-tax loss on extinguishment of $46 million on the redemption of the 2025 Notes, including the call premium and write-off of unamortized debt issuance costs.

Construction Loan

In October 2017, the Company executed a $200 million non-recourse construction loan to fund the expansion of the Company's corporate headquarters. The loan bears interest based on one month LIBOR plus 2.70%, which will reduce to LIBOR plus 2.00% at the time construction has been completed. The agreement contains financial and non-financial covenants similar to those contained in the Company Credit Facility. The Company has guaranteed completion of the construction project associated with the loan. In April 2021, the Company finalized the one year extension of the construction loan maturing in April 2022. As of March 31, 2021, the Company had $184 million in borrowings outstanding under the loan.

Mortgage Notes Payable

The Company paid its non-recourse mortgage note of $50 million in January 2021. The mortgage note was collateralized by its corporate headquarters building and bore a 5.14% interest rate.