HealthEquity Terminates Agreement, Enters New One

TL;DR

HealthEquity just ditched one deal and signed another, plus new financial obligations. Big moves!

AI Summary

HealthEquity, Inc. announced on August 23, 2024, the termination of a material definitive agreement and entered into a new material definitive agreement. The company also created a direct financial obligation or an obligation under an off-balance sheet arrangement. Specific details regarding the agreements and financial obligations were not fully disclosed in this filing.

Why It Matters

This filing indicates significant changes in HealthEquity's contractual and financial arrangements, which could impact its future operations and financial health.

Risk Assessment

Risk Level: medium — The termination of a material agreement and the creation of new financial obligations suggest potential shifts in the company's strategic direction or financial commitments that warrant closer examination.

Key Players & Entities

• HEALTHEQUITY, INC. (company) — Registrant
• August 23, 2024 (date) — Date of earliest event reported
• Delaware (jurisdiction) — State of incorporation
• 15 West Scenic Pointe Drive Suite 100 Draper , Utah 84020 (address) — Principal Executive Offices
• 801-727-1000 (phone_number) — Registrant's Principal Executive Offices Telephone Number

FAQ

Key Financial Figures

• $0.0001 — ich registered Common stock, par value $0.0001 per share HQY The NASDAQ Global Select
• $511.9 million — utstanding obligations in the amount of $511.9 million under that certain Credit Agreement, da
• $1,000,000,000 — an aggregate principal amount of up to $1,000,000,000 (with a $25,000,000 sub-limit for the i
• $25,000,000 — amount of up to $1,000,000,000 (with a $25,000,000 sub-limit for the issuance of letters o
• $450,000,000 — an aggregate principal amount of up to $450,000,000, plus an additional amount so long as t

Filing Documents

• hqy-20240823.htm (8-K) — 33KB
• healthequity2024creditagre.htm (EX-10.1) — 1488KB
• image_0a.jpg (GRAPHIC) — 2KB
• 0001428336-24-000098.txt ( ) — 1894KB
• hqy-20240823.xsd (EX-101.SCH) — 2KB
• hqy-20240823_lab.xml (EX-101.LAB) — 22KB
• hqy-20240823_pre.xml (EX-101.PRE) — 13KB
• hqy-20240823_htm.xml (XML) — 3KB

01 Entry into a Material Definitive Agreement

Item 1.01 Entry into a Material Definitive Agreement The information set forth in Item 2.03 of this report is incorporated herein by reference.

02 Termination of a Material Definitive Agreement

Item 1.02 Termination of a Material Definitive Agreement In connection with the entry into the Credit Agreement (as defined below), HealthEquity, Inc. (the " Company ") repaid all outstanding obligations in the amount of $511.9 million under that certain Credit Agreement, dated as of October 8, 2021 and as amended as of June 1, 2023 (the " Prior Credit Agreement "), by and among the Company, as borrower, each lender from time to time party thereto, JPMorgan Chase Bank, N.A., as administrative agent and the Swing Line Lender (as defined therein), and each L/C Issuer (as defined therein) party thereto, and terminated all commitments thereunder, including both the revolving credit facility and term loan facility thereunder. Item 2.03 Creation of a Direct Financial Obligation or an Obligation Under an Off-Balance Sheet Arrangement of the Registrant On August 23, 2024, the Company entered into that certain Credit Agreement (the " Credit Agreement ") among the Company, as borrower, each lender from time to time party thereto (the " Lenders "), JPMorgan Chase Bank, N.A., as administrative agent and the Swing Line Lender (as defined therein), and each L/C Issuer (as defined therein) party thereto, pursuant to which the Company established a new five-year senior secured revolving credit facility (the " Revolving Credit Facility ") in an aggregate principal amount of up to $1,000,000,000 (with a $25,000,000 sub-limit for the issuance of letters of credit). The Company borrowed $511.9 million under the Revolving Credit Facility to refinance the Prior Credit Agreement (as described above). The Revolving Credit Facility may be used in the future for working capital and general corporate purposes, including the financing of acquisitions and other investments.

01 Financial Statements and Exhibits

Item 9.01 Financial Statements and Exhibits (d) Exhibits Exhibit No. Description 10.1 Credit Agreement, dated as of August 23, 2024, by and among the Company, as borrower, each lender from time to time party thereto, JPMorgan Chase Bank, N.A., as administrative agent and the Swing Line Lender (as defined therein), and each L/C Issuer (as defined therein) party thereto.* 104 Cover Page Interactive Data File (formatted in Inline XBRL) * Schedules have been omitted pursuant to Item 601(b)(2) of Regulation S-K. The Company hereby undertakes to furnish supplementally copies of any of the omitted schedules upon request by the SEC. SIGNATURE 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. HEALTHEQUITY, INC. Date: August 27, 2024 By: /s/ James Lucania Name: James Lucania Title: Executive Vice President and Chief Financial Officer

View Full Filing

View this 8-K filing on SEC EDGAR