Benefitfocus Announces Successful Completion of $140 Million New Senior Secured Credit Facility
18 August 2022 - 1:30PM
Benefitfocus Inc. (NASDAQ: BNFT) (“Benefitfocus” or the
“Company”), an industry-leading cloud-based benefits
administration technology company that simplifies benefits
administration for employers, health plans and brokers, today
announced that it has entered into a loan agreement led by JPMorgan
providing for a senior secured credit facility in the amount of
$140 million (“Senior Secured Credit Facility”) 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 (the “Revolver”) and a $125 million delayed draw
term loan (the “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,” said Benefitfocus Chief Financial
Officer, Alpana Wegner. “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.”
The material terms of the Senior Secured Credit
Facility will be disclosed in a Form 8-K to be filed today.
JPMorgan Chase Bank, N.A. acted as administrative agent, issuing
bank and swingline lender, and Wells Fargo Securities, LLC and
Regions Bank acted as joint lead arrangers.
About Benefitfocus
Benefitfocus (NASDAQ: BNFT) is a cloud-based
benefits administration technology company committed to helping our
customers, and the people they serve, get the most out of their
health care and benefit programs. Through exceptional service
and innovative SaaS solutions, we aim to be the safest set of hands
for our customers helping to simplify the complexity of benefits
administration while delivering an experience that engages people
and unlocks the potential for better health and improved outcomes.
Our mission is simple: to improve lives with
benefits. Safe Harbor
Statement
Except for historical information, all of the
statements, expectations, and assumptions contained in this press
release are forward-looking statements. Actual results might differ
materially from those explicit or implicit in the forward-looking
statements. Important factors that could cause actual results to
differ materially include: our need to increase sales and achieve
consistent GAAP profitability; fluctuations in our financial
results; our ability to maintain our culture and recruit, integrate
and retain qualified personnel, including on our board of
directors; our ability to compete effectively and implement our
growth strategy; our reliance on channel relationships; market
developments and opportunities; the need to innovate and provide
useful products and services; risks related to changing healthcare
and other applicable regulations; the immature and volatile nature
of the market for our products and services; privacy; security and
other risks associated with our business; management of growth;
volatility and uncertainty in the global economy and financial
markets in light of the evolving COVID-19 pandemic and war in
Ukraine; and the other risk factors set forth from time to time in
our SEC filings, copies of which are available free of charge
within the Investor Relations section of the Benefitfocus website
at http://investor.benefitfocus.com/sec-filings or upon request
from our Investor Relations Department. Benefitfocus assumes no
obligation and does not intend to update these forward-looking
statements, except as required by law.
Media
Contact: 843-981-8898 pr@benefitfocus.com
Investor Relations: Doug
Kuckelman 843-790-7460 ir@benefitfocus.com
Source: Benefitfocus, Inc.
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