Benefytt Technologies details $625 million exit term loan facility

By Sarah Lizee

Olympia, Wash., Aug. 21 – Benefytt Technologies, Inc. detailed the terms of its proposed $625 million exit term loan facility in a plan supplement filed Friday with the U.S. Bankruptcy Court for the Southern district of Texas.

The facility will consist of $100 million in first-out term loans, $198 million in second-out term loans and $327 million in third-out term loans.

The first-out loans will mature in five years, the second-out loans will mature in 10 years and the third-out loans will mature in 15 years.

First-out loans will bear interest at the Base rate plus 350 basis points, second-out loans will bear interest at the Base rate plus 1,000 bps and third-out loans will not bear interest.

Ares Capital Corp. is the administrative agent, and Truist Bank is the first-out agent.

As previously reported, under the company’s Chapter 11 plan, each holder of an allowed term loan claim will receive its pro rata share of the new second- and third-out loans and 100% of the new common equity.

Each holder of a revolving credit facility claim will receive their pro rata share of the new first-out loans in an amount equal to its allowed claim, and which will be repaid under the existing contract asset collections waterfall.

Benefytt is a health insurance technology company based in Tampa, Fla. The company filed bankruptcy on May 23 under Chapter 11 case number 23-90566.

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