SelectQuote Files 8-K: Material Agreement, Financial Obligation, Equity Sales

TL;DR

SelectQuote dropped an 8-K: new deal, debt, and sold stock. Watch this.

AI Summary

SelectQuote, Inc. announced on October 15, 2024, that it entered into a material definitive agreement. The company also disclosed the creation of a direct financial obligation and unregistered sales of equity securities. This filing is a current report under the Securities Exchange Act of 1934.

Why It Matters

This filing indicates significant corporate actions by SelectQuote, including new financial commitments and equity transactions, which could impact its financial structure and shareholder value.

Risk Assessment

Risk Level: medium — The filing details material definitive agreements, financial obligations, and unregistered equity sales, which can introduce financial and operational risks.

Key Players & Entities

• SelectQuote, Inc. (company) — Registrant
• October 15, 2024 (date) — Date of earliest event reported
• 6800 West 115th Street, Suite 2511 (address) — Business and Mail Address
• Overland Park, KS 66211 (address) — Business and Mail Address

FAQ

Key Financial Figures

• $0.01 — ange on which registered Common Stock, $0.01 par value SLQT New York Stock Exchange
• $60,000,000 — Q ABS Issuer, LLC (the "Issuer") issued $60,000,000 of senior secur ed 7.80% Class A Notes
• $40,000,000 — senior secur ed 7.80% Class A Notes and $40,000,000 of senior secured 9.65% Class B Notes (

Filing Documents

• slqt-20241015.htm (8-K) — 37KB
• exhibit101-creditagreement.htm (EX-10.1) — 1665KB
• exhibit102-formofwarrant.htm (EX-10.2) — 167KB
• exhibit991-pressreleasedat.htm (EX-99.1) — 7KB
• image_0.jpg (GRAPHIC) — 2KB
• 0001794783-24-000069.txt ( ) — 2297KB
• slqt-20241015.xsd (EX-101.SCH) — 2KB
• slqt-20241015_lab.xml (EX-101.LAB) — 21KB
• slqt-20241015_pre.xml (EX-101.PRE) — 12KB
• slqt-20241015_htm.xml (XML) — 3KB

01 Entry into a Material Definitive Agreement

Item 1.01 Entry into a Material Definitive Agreement. Credit Agreement On October 15, 2024, SelectQuote, Inc. (the "Company") entered into an Eleventh Amendment (the "Eleventh Amendment") to its Credit Agreement, dated as of November 5, 2019 (as previously amended, the "Credit Agreement" and as further amended by the Eleventh Amendment, the "Amended Agreement"), with Wilmington Trust, National Association, as resigning administrative agent, Ares Capital Corporation, as successor administrative agent, UMB Bank, N.A., as revolver agent; and certain of the Company's existing lenders. The Eleventh Amendment amends the Credit Agreement to, among other things, (1) extend the scheduled maturity date of existing term loans (2) permit certain modifications to the asset coverage ratio and minimum liquidity covenant that the company is required to maintain compliance with and (3) allow the Company to enter into the ABS Facility (the "ABS Facility") described below. Following the Eleventh Amendment until the fiscal quarter ending September 30, 2026, the term loans under the Amended Agreement will accrue cash and PIK interest on amounts drawn ranging (A) at a rate per annum equal to either (a) SOFR (subject to a floor of 3.00%) plus 6.0% to 6.50% or (b) a base rate plus 5.0% to 5.50%, at the Company's option for cash interest and (B) at a rate per annum equal 0%-3% for PIK interest, in each case depending on the aggregate principal amount of term loans outstanding on the calculation date. The interest rate may increase after September 30, 2026 as set forth in the Amended Agreement if the Company fails to achieve certain milestones set forth in the Amended Agreement. The obligations of the Company under the Amended Agreement continue to be guaranteed by certain of the Company's subsidiaries, and secured by a security interest in all assets of the Company, subject to certain exceptions detailed in the Amended Agreement and related ancillary documentation. In connection wit

02 Unregistered Sales of Equity Securities

Item 3.02 Unregistered Sales of Equity Securities. The information set forth in Item 1.01 of this Current Report on Form 8-K is incorporated by reference into this Item 3.02. The issuances of common stock pursuant to the Warrants are exempt from registration under the Securities Act of 1933, as amended (the "Securities Act"), by virtue of the exemption provided by Section 4(a)(2) of the Securities Act.

01 Regulation FD Disclosure

Item 7.01 Regulation FD Disclosure. On October 16, 2024, the Company issued a press release announcing that the parties entered into the transactions described herein. A copy of the press release is attached hereto as Exhibit 99.1 and is incorporated herein by reference. The information in Item 7.01 of this Current Report on Form 8-K shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference into any other filing under the Securities Act of 1933, as amended, or the Exchange Act, except as expressly set forth by specific reference in such a filing.

01 Financial Statements and Exhibits

Item 9.01 Financial Statements and Exhibits. (d) Exhibits Exhibit No. Description of Exhibit 10.1 Eleventh Amendment to Credit Agreement 10.2 Form of Issued Warrant 99.1 Press Release dated October 16, 2024 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, as amended, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. SELECTQUOTE, INC. Date: October 16, 2024 By: /s/ Daniel A. Boulware Name: Daniel A. Boulware Title: General Counsel and Secretary

View Full Filing

View this 8-K filing on SEC EDGAR