SelectQuote secures $415 million credit facility to extend debt maturity

SelectQuote Inc. (NYSE: SLQT) completed a $415 million credit facility consisting of a $325 million term loan from Pathlight Capital LP and a $90 million revolving credit facility with UMB Bank, according to a company statement.

The Medicare insurance distributor used proceeds from the new term loan to fully repay existing debt previously scheduled to mature in June 2026 and September 2027. The new arrangement extends the company's debt maturity to January 2031.

The revolving credit facility with UMB Bank increases SelectQuote's available liquidity to $90 million during peak season, compared to the previous $72 million limit. The company said the new facility provides a lower cost of capital with potential interest rate reductions totaling up to 100 basis points.

"This new financing agreement positions us well to continue to invest and grow our industry-leading senior health insurance and healthcare services businesses," said Tim Danker, SelectQuote's chief executive officer.

SelectQuote operates three business lines: SelectQuote Senior for Medicare plans, SelectQuote Healthcare Services including SelectRx Pharmacy, and SelectQuote Life. The company reported approximately $1 billion in commissions receivable.

Tyler Harrington, managing director at Pathlight Capital, cited the strength of SelectQuote's management team and diversified business model as factors in the lending decision.

Jefferies served as exclusive financial advisor to SelectQuote on the transaction, with Wachtell, Lipton, Rosen & Katz providing legal counsel.

You May Also Be Interested In