SelectQuote closes $415m credit facility, extends debt maturity

Financing Overview - SelectQuote has secured $415 million in financing, which includes a $325 million term loan from Pathlight Capital and a $90 million credit facility from UMB Bank [1] - The refinancing extends the company's term debt maturity to January 2031 and enhances liquidity for ongoing operations [1] Credit Facility Details - The revolving credit facility has been increased to $90 million during peak periods, up from $72 million previously [2] - The new term loan features lower principal amortization and offers greater investment flexibility compared to prior term debt [2] Management Commentary - CEO Tim Danker expressed satisfaction with the new financing agreement, highlighting it as a significant milestone for optimizing the capital structure and supporting growth in senior health insurance and healthcare services [3] - The new facility provides a modestly lower cost of capital and includes provisions for potential future interest rate reductions of up to 100 basis points [3] Business Model Confidence - The refinancing reflects lender confidence in SelectQuote's business model, supported by approximately $1 billion in commissions receivable and increasing cash generation from the SelectRx pharmacy and healthcare services division [4] - CFO Ryan Clement noted that the financing validates the business model and strengthens liquidity and financial flexibility for strategic priorities [5] Previous Investments - In February, SelectQuote received a $350 million investment from funds managed by Bain Capital, Morgan Stanley Private Credit, and Newlight Partners [5]