SelectQuote nets $200M of incremental delayed-draw term loans

SelectQuote Inc. on Nov. 2 entered into an amendment to its senior secured credit facility to provide for two incremental delayed-draw term loans, or DDTLs, of $100 million each, according to the company. Morgan Stanley arranged the transaction and is administrative agent on the loan.

Note that the company has an existing DDTL facility of $145 million that remained unused as of closing of the amendment, so total DDTL capacity increases to $345 million with this transaction. The funded interest rate will match that of the company's existing term loans.

In addition, commitments to the company's revolver were increased by $25 million, bringing the total borrowing capacity as of Nov. 4 to $100 million.

SelectQuote has an existing term loan due November 2024 that dates to 2019 and which had roughly $471.9 million outstanding as of Nov. 5. Pricing on the loan is L+500 with a 0.75% Libor floor. It is subject to a minimum asset coverage ratio covenant.

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