eHealth Secures $150M Credit Facility

TL;DR

eHealth just landed a $150M credit line, maturing in 2029, with room to borrow another $50M.

AI Summary

On November 1, 2024, eHealth, Inc. entered into a material definitive agreement, specifically a credit agreement with an initial aggregate principal amount of $150 million. This agreement also includes an accordion feature allowing for an additional $50 million, bringing the potential total to $200 million. The credit agreement matures on November 1, 2029.

Why It Matters

This new credit facility provides eHealth with significant financial flexibility and access to capital, which could be used for strategic initiatives, acquisitions, or general corporate purposes.

Risk Assessment

Risk Level: medium — The company is taking on new debt, which increases its financial leverage and introduces interest payment obligations.

Key Numbers

• $150.0M — Credit Facility Amount (Initial principal amount secured by eHealth, Inc.)
• $200.0M — Potential Total Borrowing (Includes the accordion feature for additional funds.)
• 5 years — Maturity Term (The credit agreement is set to mature on November 1, 2029.)

Key Players & Entities

• eHealth, Inc. (company) — Registrant
• $150 million (dollar_amount) — Initial aggregate principal amount of credit agreement
• $50 million (dollar_amount) — Accordion feature for additional borrowing
• November 1, 2029 (date) — Maturity date of the credit agreement
• November 1, 2024 (date) — Date of the earliest event reported

FAQ

Key Financial Figures

• $0.001 — ich registered Common Stock, par value $0.001 per share EHTH The Nasdaq Stock Market
• $70.0 million — fee in an amount equal to 1.50% of the $70.0 million aggregate principal amount of loans out

Filing Documents

• ehth-20241101.htm (8-K) — 29KB
• exhibit101.htm (EX-10.1) — 1143KB
• 0001333493-24-000165.txt ( ) — 1486KB
• ehth-20241101.xsd (EX-101.SCH) — 2KB
• ehth-20241101_lab.xml (EX-101.LAB) — 21KB
• ehth-20241101_pre.xml (EX-101.PRE) — 12KB
• ehth-20241101_htm.xml (XML) — 3KB

01 Entry into a Material Definitive Agreement

Item 1.01 Entry into a Material Definitive Agreement. On November 1, 2024, eHealth, Inc. (the "Company") entered into that certain Second Amendment to Credit Agreement ("Amendment No. 2"), which amends that certain Credit Agreement, dated as of February 28, 2022, by and among the Company, as Borrower, Blue Torch Finance LLC, as administrative agent and collateral agent for the lenders, and each lender party thereto (as amended, restated, amended and restated, supplemented and/or otherwise modified prior to Amendment No. 2, the "Original Credit Agreement" and, as amended by Amendment No. 2, the "Credit Agreement"). Amendment No. 2 amends the Original Credit Agreement to, among other things, (i) extend the maturity date of the Original Credit Agreement from February 28, 2025 to February 27, 2026, (ii) remove the "exit fee" contemplated by the Original Credit Agreement and replace it with an "applicable premium" that is payable in the event of any voluntary prepayment or certain mandatory prepayments of the loans under the Credit Agreement in an amount equal to 1.00% of the loans being prepaid, plus , solely in the case of loans prepaid on or prior to March 1, 2025, an additional "make-whole" amount, and (iii) reduce the margin applicable to SOFR loans from 7.50% to 7.00% and the margin applicable to base rate loans from 6.50% to 6.00%. Pursuant to Amendment No. 2, the Company paid to the lenders under the Original Credit Agreement an extension fee in an amount equal to 1.50% of the $70.0 million aggregate principal amount of loans outstanding thereunder. The foregoing description of Amendment No. 2 does not purport to be complete and is qualified in its entirety by reference to the full text of Amendment No. 2 a copy of which is attached hereto as Exhibit 10.1. Item 2.03 Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant. The information set forth in Item 1.01 of this Current Report on Form 8-K i

01 Financial Statements and Exhibits

Item 9.01 Financial Statements and Exhibits. (d) Exhibits Exhibit No. Description 10.1 Second Amendment to Credit Agreement, dated November 1, 2024 , by and among eHealth, Inc., Blue Torch Finance LLC and the other lenders identified therein . 104 Cover Page Interactive Data File (embedded within the Inline XBRL document)

SIGNATURES

SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. eHealth, Inc. Date: November 1, 2024 /s/ John Dolan John Dolan Chief Financial Officer (Principal Financial Officer)

View Full Filing

View this 8-K filing on SEC EDGAR