HealthEquity Secures New Credit Facility and Repays Debt

Healthequity (HQY) has provided an update.

HealthEquity, Inc. has successfully refinanced its prior credit obligations, repaying $511.9 million and establishing a new $1 billion senior secured revolving credit facility, which includes a $25 million sub-limit for letters of credit. The new facility offers flexible borrowing rates tied to leverage ratios and permits prepayments without penalties. The agreement also outlines specific covenants and financial performance benchmarks that the company must meet, ensuring the company maintains prudent financial management. This strategic financial maneuver provides HealthEquity with a robust framework for future working capital, acquisitions, and investments.

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