eHealth Announces $125 Million Asset-Based Revolving Credit Facility

Rhea-AI Summary

eHealth (Nasdaq: EHTH) announced a new $125 million asset-based revolving credit facility with Manulife | Comvest on January 6, 2026. The facility carries pricing of SOFR + 6.50%, a three-year maturity, and an optional borrowing base increase of up to $50 million at the lender's option. A portion of the proceeds repaid approximately $70 million outstanding under the Blue Torch term loan and covered transaction fees and expenses.

The company said remaining proceeds will support strategic growth initiatives, including investments in AI-driven capabilities, omni-channel technology, revenue diversification, and general corporate purposes. eHealth also amended an investment agreement related to its convertible Series A preferred stock. Guggenheim Securities served as financial advisor.

Positive

• $125M asset-based revolving credit facility
• Three-year maturity provides longer-term stability
• Pricing at SOFR + 6.50%
• Facility includes optional $50M increase in borrowing base
• Repaid approximately $70M Blue Torch term loan in full

Negative

• A portion of proceeds paid transaction fees and expenses
• Company still needs to address convertible Series A preferred stock

News Market Reaction – EHTH

-3.22%

1 alert

-3.22% News Effect

On the day this news was published, EHTH declined 3.22%, reflecting a moderate negative market reaction.

Data tracked by StockTitan Argus on the day of publication.

Key Figures

New credit facility: $125 million Facility pricing: SOFR + 6.50% Maturity: 3 years +5 more

8 metrics

New credit facility $125 million Size of new asset-based revolving Credit Facility with Manulife | Comvest

Facility pricing SOFR + 6.50% Stated interest margin on new Credit Facility, described as favorable vs prior loan

Maturity 3 years Tenor of the new Credit Facility, providing longer-term stability

Borrowing base increase up to $50 million Potential additional funding capacity at Manulife | Comvest’s option

Blue Torch repayment approximately $70 million Outstanding amount of prior Blue Torch term loan repaid using facility proceeds

Shelf capacity $300 million Maximum aggregate amount under Form S-3 universal shelf registration

Convertible preferred $370.3 million Carrying value of convertible preferred stock in 10-Q as of Sep 30, 2025

Quarter-end cash $63.1 million Cash and cash equivalents at Sep 30, 2025 per 10-Q filing

Market Reality Check

Price: $1.48 Vol: Volume 357,830 is below t...

normal vol

$1.48 Last Close

Volume Volume 357,830 is below the 20-day average (0.88x of norm), suggesting a modest pre-news positioning. normal

Technical Shares at $4.35 are trading below the 200-day MA of $4.52, reflecting a still-pressured longer-term trend.

Peers on Argus

EHTH gained 2.11% while key peers were mixed: GOCO -0.79%, AIFU -2.51%, TIRX -5....

EHTH gained 2.11% while key peers were mixed: GOCO -0.79%, AIFU -2.51%, TIRX -5.3%, XHG +6.26%, TWFG +1.9%. The move appears company-specific rather than a broad insurance broker rally.

Historical Context

5 past events · Latest: Dec 18 (Positive)

Pattern 5 events

Date	Event	Sentiment	Move	Catalyst
Dec 18	Guidance update	Positive	+21.2%	Raised 2025 guidance after strong AEP performance and better unit economics.
Dec 03	Survey snapshot	Neutral	+3.2%	Consumer survey showing high satisfaction but rising healthcare costs and GLP-1 interest.
Nov 12	AI capabilities	Positive	+2.2%	Expanded AI voice agent Alice to more call types, improving after-hours engagement.
Nov 06	Consumer survey	Neutral	-21.9%	Survey highlighting satisfaction with coverage but significant cost-driven care delays.
Nov 05	Earnings release	Neutral	+0.2%	Q3 2025 earnings and call details without clear directional surprise in summary.

Pattern Detected

Recent fundamentally positive updates (guidance raise, AI strategy) often coincided with positive price reactions, with one notable divergence on survey news.

Recent Company History

Over the last few months, eHealth reported several notable developments. On Nov. 5, 2025, it filed a 10-Q showing quarterly revenue of $53.9M, a net loss of $31.7M, and cash of $63.1M, alongside contract assets of $907.7M. Subsequent news highlighted consumer and enrollment surveys and an AI voice agent rollout. On Dec. 18, 2025, eHealth updated 2025 guidance to revenue of $540–$560M, GAAP net income of $30–$45M, and adjusted EBITDA of $80–$95M. Today’s new credit facility fits that trajectory of improving capital structure alongside AI and growth investments.

Regulatory & Risk Context

Active S-3 Shelf · $300 million

Shelf Active

Active S-3 Shelf Registration 2025-08-07

$300 million registered capacity

eHealth has an effective Form S-3 universal shelf filed on Aug. 7, 2025 covering up to $300 million of various securities. This shelf expands capital-raising flexibility for working capital, general corporate purposes, or acquisitions. No usage has been recorded yet (usage_count 0), so any future equity or debt issuance would depend on later prospectus supplements specifying terms and potential dilution.

Market Pulse Summary

This announcement outlines a new $125 million asset-based revolving facility at SOFR + 6.50% with a ...

Analysis

This announcement outlines a new $125 million asset-based revolving facility at SOFR + 6.50% with a 3-year maturity, used in part to repay about $70 million of existing term debt and fund AI and omni-channel investments. It fits alongside prior guidance for $540–$560M in 2025 revenue and an existing $300 million shelf, while the company also references its sizable convertible preferred stock. Investors may watch future capital-structure actions, borrowing-base utilization, and AI-related returns.

Key Terms

asset-based revolving credit facility, SOFR, convertible Series A preferred stock, Form 8-K

4 terms

asset-based revolving credit facility financial

"entered into a new $125 million asset-based revolving credit facility (the "Credit Facility")"

A loan arrangement where a lender agrees to make funds available up to a set limit that a borrower can draw, repay, and draw again, with the amount available tied to the value of specific assets (like inventory, receivables, or equipment) pledged as collateral. It matters to investors because it provides flexible working capital while limiting risk exposure: the company can fund growth or cover shortfalls quickly, but borrowing capacity can shrink if asset values fall.

SOFR financial

"provides favorable pricing (SOFR + 6.50%) compared to eHealth's term loan"

The Secured Overnight Financing Rate (SOFR) is a market benchmark that measures the cost of borrowing cash overnight using U.S. Treasury securities as collateral. Investors watch SOFR because it acts like a speedometer for short-term interest costs—affecting loan rates, bond yields and the pricing of interest-rate contracts—so movements change borrowing expenses, cash returns and the value of interest-sensitive investments.

convertible Series A preferred stock financial

"including by addressing its convertible Series A preferred stock, while enhancing governance"

Convertible Series A preferred stock is a special class of early-stage shares that gives holders priority over common shareholders for dividends and payouts but can be converted into ordinary shares under set conditions. Think of it like a VIP ticket that can later be exchanged for regular admission: it limits downside with priority rights while preserving upside through conversion, so investors watch it for its impact on ownership dilution, control, and potential returns.

Form 8-K regulatory

"For complete terms of the Credit Facility, refer to eHealth's Form 8-K filed"

A Form 8-K is a report that companies file with the government to share important news quickly, such as changes in leadership, major business deals, or financial updates. It matters because it helps investors stay informed about significant events that could affect the company's value or stock price.

AI-generated analysis. Not financial advice.

Deal Further Strengthens Capital Structure and Better Positions eHealth for Long-Term Success
Proceeds Used to Repay Existing Blue Torch Term Loan and Provide Strategic Capital

AUSTIN, Texas, Jan. 6, 2026 /PRNewswire/ -- eHealth, Inc. (Nasdaq: EHTH), a leading private online health insurance marketplace ("eHealth"), today announced that its subsidiary, eHealthInsurance Services, Inc. (together with eHealth, the "Company"), has entered into a new $125 million asset-based revolving credit facility (the "Credit Facility") with Manulife | Comvest Credit Partners ("Manulife | Comvest"), a leading middle-market credit investment firm.

The Credit Facility provides favorable pricing (SOFR + 6.50%) compared to eHealth's term loan provided by Blue Torch Finance LLC and its lender group (the "Blue Torch Loan") and carries a three-year maturity, delivering greater financial flexibility and longer-term stability. The Credit Facility also provides for a flexible borrowing base that can drive an increase in funding of up to $50 million at Manulife | Comvest's option, enhancing access to capital as the Company grows. For complete terms of the Credit Facility, refer to eHealth's Form 8-K filed with the Securities and Exchange Commission today.

A portion of the proceeds from the Credit Facility was used to repay in full the approximately $70 million outstanding under the Blue Torch Loan, as well as to pay certain fees and expenses related to the transactions. The Company intends to use the remaining proceeds from the Credit Facility to support strategic growth initiatives, including investments in AI-driven capabilities and omni-channel technology and diversifying the Company's revenue base, and for general corporate purposes.

"This agreement is a significant step in strengthening eHealth's capital structure and positioning the Company for long-term success," said Derrick Duke, Chief Executive Officer of eHealth. "The favorable terms, extended maturity, and flexible borrowing base provide us with the resources and agility to invest in AI-driven innovation, business diversification and other high-ROI opportunities. We are excited to partner with Manulife | Comvest, a firm with a proven track record of supporting middle-market companies, as we execute on our growth strategy."

The Company remains focused on further improving its capital structure beyond this new Credit Facility, including by addressing its convertible Series A preferred stock, while enhancing governance through the establishment of a Strategy Committee to support long-term planning and the evaluation of opportunities that enhance stockholder value. In connection with the Credit Facility, eHealth entered into an amendment to its investment agreement with the holder of its convertible Series A preferred stock, as described in eHealth's Form 8-K filed with the Securities and Exchange Commission today.

Guggenheim Securities, LLC served as financial advisor to the Company.

About Manulife | Comvest Credit Partners

Manulife | Comvest Credit Partners is a private credit platform built on the continuity of Comvest's proven leadership and Manulife's global scale. The platform provides creative and flexible private credit solutions to both sponsored and non-sponsored companies. Alongside Manulife Investment Management's private equity program and global distribution network, the platform combines deep origination channels, rigorous underwriting discipline, and long-term stability that seeks to deliver attractive risk-adjusted returns across market cycles.

About eHealth, Inc.

We're Matchmakers. For over 25 years, eHealth has helped millions of Americans find the healthcare coverage that fits their needs at a price they can afford. As a leading independent licensed insurance agency and advisor, eHealth offers access to over 180 health insurers, including national and regional companies. 

For more information, visit eHealth.com or follow us on LinkedIn, Facebook, Instagram, and X. Open positions can be found on our career page.

Forward Looking Statements

This press release contains statements that are forward-looking statements as defined within the Private Securities Litigation Reform Act of 1995. These include, but are not limited to, statements relating to the following: our expectations regarding our financial position, operations, financial flexibility and business strategy; our capital strategy and objectives for our future operations, including the expected impact of the $125 million Credit Facility on our business, financial condition and results of operations and availability of additional borrowings under the Credit Facility; our expected use of proceeds from the Credit Facility; our continuing efforts to support profitable growth and address our convertible Series A preferred stock; our ability to achieve our capital strategy, financial objectives and long-term value creation; and other statements regarding our future operations, financial condition, prospects and business strategies.

Forward-looking statements are inherently subject to various risks and uncertainties that could cause actual results to differ materially from the statements made. The risks and uncertainties that could cause our results to differ materially from those expressed or implied by such forward-looking statements include those described in eHealth's most recent Annual Report on Form 10-K and Quarterly Report on Form 10-Q filed with the Securities and Exchange Commission and available on the investor relations page of eHealth's website at http://www.ehealthinsurance.com and on the Securities and Exchange Commission's website at www.sec.gov.

All forward-looking statements in this press release are based on information available to eHealth as of the date hereof, and eHealth does not assume any obligation to update the forward-looking statements provided to reflect events that occur or circumstances that exist after the date on which they were made, except as required by law.

Contact:

Media
Lara Sasken
Chief Communications Officer
pr@ehealth.com

Investors
Kate Sidorovich, CFA
Senior Vice President, Investor Relations & Corporate Development
investors@ehealth.com

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SOURCE eHealth, Inc.

FAQ

When did eHealth (EHTH) announce the $125 million credit facility?

eHealth announced the facility on January 6, 2026.

What are the terms and pricing of eHealth's new credit facility (EHTH)?

The facility is $125 million with pricing at SOFR + 6.50% and a three-year maturity.

How much of the new eHealth (EHTH) facility was used to repay existing debt?

Approximately $70 million of the proceeds repaid the outstanding Blue Torch term loan in full.

Can eHealth (EHTH) borrow more under the new credit facility?

Yes; the facility includes an option for the lender to increase the borrowing base by up to $50 million.

What will eHealth (EHTH) use the remaining proceeds for?

The company intends to use remaining proceeds for AI-driven capabilities, omni-channel technology, revenue diversification, and general corporate purposes.

Where can investors find the complete terms of eHealth's (EHTH) credit facility?

Complete terms are available in eHealth's Form 8-K filed with the Securities and Exchange Commission.