LONG BEACH, CA—Molina Healthcare Inc., through its wholly-owned subsidiary, Molina Center LLC, has successfully completed a sale/leaseback transaction with the dedicated net lease group of Angelo, Gordon & Co. for $158 million. Under the terms of this transaction, Molina Healthcare has sold to AG its principal executive offices in Long Beach, Calif., as well as an office building in Columbus, Ohio, that houses the principal health plan operations of Molina’s wholly-owned subsidiary, Molina Healthcare of Ohio.
“We continue to pursue the many opportunities that are open to us today in order to position the company for long-term success,” Molina CEO J. Mario Molina, M.D. said in a statement. “At our Investor Day on February 21, 2013, we talked about alternative financing options, including a potential sale and lease back transaction. Consistent with our long-term capital plan, this transaction unlocks additional capital, allowing Molina Healthcare to fund future growth initiatives while remaining committed to our mission of serving low-income families and individuals.”
As a part of the agreement, Molina Healthcare has entered into long-term leases for both real properties under which AG will be the landlord and Molina will be the tenant. In 2011, Molina Healthcare purchased the Long Beach property that consists of two conjoined 14-story office towers on approximately five acres of land. The building houses the company’s corporate headquarters and its California health plan subsidiary, Molina Healthcare of California. The Ohio property was acquired in 2012.