SelectQuote, Inc. (NYSE: SLQT) announced the completion of a $100 million securitization transaction on October 15, 2024. This marks the first phase of the company's recapitalization strategy.
The securitization is designed to improve SelectQuote's capital flexibility, reduce its annual cash debt service, and lower its cost of capital. Management expects annual interest rate savings of approximately $5 million.
This transaction lays the foundation for potential future warehouse financing and securitization deals. It is a critical step in the company's ongoing strategy to optimize its balance sheet and support growth initiatives.
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