Benefitfocus, a cloud-based benefits administration technology company that simplifies benefits administration for employers, health plans and brokers, 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,” Alpana Wegner, CFO of Benefitfocus , said. “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 acted as administrative agent, issuing bank and swingline lender, and Wells Fargo Securities and Regions Bank acted as joint lead arrangers.