Onex Partners, the private equity fund sponsored by Canadian conglomerate Onex Corporation, has made its first deal since holding a $1 billion first close in December, taking a 24 percent stake in Magellan Health Services Inc, a
Onex Partners, which is backed by a $400 million cornerstone commitment from Onex and which hopes to close commitments totalling $1.6 billion later this year, has agreed to pay $101 million for the minority stake in Magellan. The deal sees the heavily indebted Magellan emerge from bankruptcy with a $600 million reduction of its debt, in addition to $150m of fresh capital from Onex and Magellan’s creditors.
The investment from Onex Partners was part of a financial reorganisation plan of Magellan approved by the bankruptcy court after the company filed for Chapter 11 bankruptcy protection last March. Magellan's equity is expected to resume trading on the Nasdaq stock exchange later today.
Magellan Health Services is a behavioural managed healthcare organisation serving
Onex is one of