SelectQuote closes $415m credit facility, extends debt maturity

US Medicare insurer SelectQuote has obtained $415m successful financing, consisting of a $325m word indebtedness from Pathlight Capital and a $90m recognition installation from UMB Bank.

The refinancing extends the company’s word indebtedness maturity to January 2031 and increases liquidity to enactment ongoing operations.

Proceeds from the caller word indebtedness were utilized to afloat repay each existing word debt, including amounts antecedently scheduled to mature successful June 2026 and September 2027.

Under the updated structure, the revolving recognition installation has been accrued to $90m during highest periods, up from $72m nether the earlier arrangement.

The word indebtedness besides features little main amortisation and provides greater flexibility for concern compared with SelectQuote’s anterior word debt, the radical said.

SelectQuote CEO Tim Danker said: “We are highly pleased to denote this caller financing agreement, which marks a important milestone successful the continued optimisation of our superior structure. As we look from different palmy Medicare Annual Enrolment Period, this caller financing statement positions america good to proceed to put and turn our industry-leading elder wellness security and healthcare services businesses.”

According to the company, the caller installation offers a modestly little outgo of superior and includes provisions for imaginable aboriginal involvement complaint step-downs of up to 100 ground points, alongside enhanced operating flexibility.

It said the refinancing reflects lender assurance successful its concern model, citing astir $1bn successful commissions receivable and the increasing currency procreation from its SelectRx pharmacy and healthcare services division.

SelectQuote CFO Ryan Clement added: “This palmy financing is simply a wide validation of our concern exemplary and the assurance our lending partners person successful SelectQuote's currency travel procreation capabilities. Coupled with the enhanced UMB revolver, we person importantly strengthened our liquidity presumption and wide fiscal flexibility to execute connected our strategical priorities.”

Last February, SelectQuote received a $350m concern from funds managed by Bain Capital, Morgan Stanley Private Credit and Newlight Partners.

"SelectQuote closes $415m recognition facility, extends indebtedness maturity" was primitively created and published by Life Insurance International, a GlobalData owned brand.

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