eHealth, Inc. entered into a $125 million asset‑based revolving credit facility with Manulife | Comvest on January 6, 2026. The facility carries a spread of SOFR + 6.50 % and a three‑year maturity, with an option to increase the borrowing base by an additional $50 million at the lender’s discretion.
Proceeds will first be used to retire roughly $70 million of the company’s existing Blue Torch term loan and to cover related transaction fees. The remaining balance is earmarked for strategic growth initiatives, including investments in AI‑driven enrollment technology and diversification of eHealth’s revenue streams beyond its core Medicare Advantage business.
The financing comes at a time when eHealth has been operating with negative free cash flow over the past 12 months and has seen mixed quarterly results—revenue declined year‑over‑year in Q3 2025 while guidance was raised, and Q2 2025 revenue also fell but profitability improved. The new credit line therefore provides a critical liquidity cushion and a lower‑cost alternative to the higher‑rate Blue Torch loan, strengthening the company’s capital structure amid ongoing cash‑flow pressures.
Strategically, the facility supports eHealth’s push into AI, a differentiator in the highly competitive Medicare marketplace. CEO Derrick Duke noted that the deal “strengthens our capital structure and positions the company for long‑term success,” while Chief Digital and AI Officer Ketan Babaria highlighted that AI is “playing a key role in streamlining how beneficiaries shop for and use their Medicare Advantage plans,” underscoring the company’s intent to capture market share through technology innovation.
By reducing debt costs and freeing capital for technology investments, eHealth is better positioned to execute its roadmap of expanding AI capabilities, broadening its product portfolio, and improving operational efficiency. The transaction signals lender confidence in eHealth’s business model and provides the financial flexibility needed to navigate regulatory changes and competitive pressures in the Medicare sector.
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