HealthEquity enters into $100 million five-year revolver via JPMorgan

By Marisa Wong

Morgantown, W.Va., Oct. 6 – HealthEquity, Inc. entered into a new $100 million five-year secured revolving credit facility with J.P. Morgan Securities LLC as bookrunner and lead arranger and JPMorgan Chase Bank, NA as administrative agent on Sept. 30, according to an 8-K filing with the Securities and Exchange Commission.

Borrowings will bear interest at adjusted Libor plus a spread of 150 basis points to 200 bps, depending on the company’s total leverage ratio. The initial spread is 150 bps.

Additionally, the company will pay a commitment fee ranging from 20 bps to 30 bps on the daily amount of the unused commitments. The commitment fee is also based on the total leverage ratio and is initially 20 bps.

The credit agreement requires the company to maintain a total leverage ratio of not more than 3.00 to 1.00 as of the end of each fiscal quarter and a minimum interest coverage ratio of at least 3.00 to 1.00 as of the end of each fiscal quarter.

Loan proceeds may be used for general corporate purposes. No amounts have been drawn under the facility as of Tuesday.

HealthEquity is a non-bank health savings trustee based in Draper, Utah.

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