SelectQuote closes $415 mn credit facility to extend debt maturity to 2031

SelectQuote, a U.S.-based, technology-enabled, direct-to-consumer insurance distribution and healthcare services company, has completed a new $415 mn credit facility, combining a $325 mn term loan provided by Pathlight Capital with an expanded $90 mn revolving credit facility from UMB Bank.

The refinancing strengthens SelectQuote’s balance sheet by pushing term debt maturity out to January 2031 and increasing liquidity available to support ongoing operations.

The transaction reflects lender confidence in the company’s business model, including roughly $1 bn in commissions receivable and a healthcare services segment that management describes as increasingly cash generative, led by the SelectRx pharmacy platform.

SelectQuote operates primarily as an insurance broker, connecting consumers with multiple carriers for senior health, life, auto, and home insurance rather than underwriting policies itself. It has also expanded into pharmacy and healthcare services targeting U.S. seniors.

Proceeds from the new term loan were used to fully retire existing term debt, including balances previously scheduled to mature in June 2026 and September 2027.

The refinancing effectively resets the company’s debt profile with a new five-year maturity, reducing near-term refinancing pressure.

Liquidity also improves under the revised structure. The UMB revolving credit facility now provides access to as much as $90 mn during peak operating periods, up from $72 mn under the prior arrangement.

The Pathlight term loan carries lower principal amortization requirements than the previous facility, giving SelectQuote more flexibility to allocate capital toward operations and investment.

The company said the new credit agreement modestly improves its cost of capital and includes potential interest rate step-downs of up to 100 basis points over time.

Management also pointed to greater operating flexibility under the revised covenants.

Source: https://beinsure.com/news/selectquote-closes-415-mn-credit-facility/