Benefitfocus completes $140 million loan
Cloud-based benefits software Benefitfocus has entered into a loan agreement led by JPMorgan providing for a senior secured credit facility in the amount of $140 million to replace the company’s existing revolving line of credit.
The Senior Secured Credit Facility matures in August 2026 and includes a $15 million revolver and a $125 million delayed draw term loan. At closing, the Term Loan will be unfunded resulting in a leverage neutral transaction. Benefitfocus plans to use the proceeds of any borrowing under the Senior Secured Credit Facility for general corporate purposes and refinancing of existing indebtedness.
“We are pleased to extend our maturity profile with this new credit facility in place. Today’s announcement is another vote of confidence by our banking partners in Benefitfocus, further validating our momentum as we continue to execute on our transformation plan and drive shareholder value.” -Benefitfocus Chief Financial Officer, Alpana Wegner.