debt
confidence high
sentiment positive
materiality 0.60
HealthEquity enters $1B credit facility, repays prior $512M debt
HEALTHEQUITY, INC.
- New $1,000,000,000 senior secured revolving credit facility entered Aug 23, 2024; $511.9M drawn to refinance prior debt.
- Prior 2021 credit agreement with $511.9M outstanding fully repaid and commitments terminated.
- Five-year maturity; includes $25M letter of credit sublimit and ability to incur up to $450M additional loans subject to leverage test.
- Interest at SOFR +1.25%-2.50% or base rate +0.25%-1.50%; commitment fee 0.25%-0.50%, based on leverage grid.
- Financial covenants: maximum total net leverage ratio 5.00:1 and minimum interest coverage ratio 3.00:1, effective Jan 31, 2025.