Pathlight Capital Serves as Administrative Agent on $415,000,000 Senior Secured Credit Facility for SelectQuote, Inc.

Rhea-AI Summary

SelectQuote (NASDAQ:SLQT) announced a $415,000,000 senior secured credit facility with Pathlight Capital serving as Administrative Agent on Jan 13, 2026. As part of the financing, Pathlight underwrote and provided a $325,000,000 term loan. Proceeds will be used to refinance existing debt and to support ongoing working capital needs. Company commentary says the funding lowers its cost of capital, improves liquidity and provides capital flexibility to invest in its senior health insurance and healthcare services businesses. Pathlight described the transaction as an example of its asset-based financing for specialty finance assets.

Positive

• $415,000,000 senior secured credit facility announced (Jan 13, 2026)
• $325,000,000 term loan underwritten and provided by Pathlight Capital
• Proceeds allocated to refinance existing debt and support working capital, cited to lower cost of capital and improve liquidity

Negative

• None.

News Market Reaction

-11.05%

31 alerts

-11.05% News Effect

-8.6% Trough in 4 hr 26 min

-$36M Valuation Impact

$289M Market Cap

1.3x Rel. Volume

On the day this news was published, SLQT declined 11.05%, reflecting a significant negative market reaction. Argus tracked a trough of -8.6% from its starting point during tracking. Our momentum scanner triggered 31 alerts that day, indicating elevated trading interest and price volatility. This price movement removed approximately $36M from the company's valuation, bringing the market cap to $289M at that time.

Data tracked by StockTitan Argus on the day of publication.

Key Figures

Credit facility size: $415 million Term loan amount: $325 million

2 metrics

Credit facility size $415 million Senior secured credit facility for SelectQuote

Term loan amount $325 million Senior secured term loan underwritten by Pathlight

Market Reality Check

Price: $1.61 Vol: Volume 5,297,026 is 4.8x ...

high vol

$1.61 Last Close

Volume Volume 5,297,026 is 4.8x the 20-day average of 1,102,665, indicating heavy interest pre-news. high

Technical Price 1.72 is trading below the 200-day MA of 2.13, despite the strong 22.86% move.

Peers on Argus

SLQT gained 22.86% while key peers were mixed: TWFG -0.47%, XHG -0.7%, GOCO +2.5...

SLQT gained 22.86% while key peers were mixed: TWFG -0.47%, XHG -0.7%, GOCO +2.56%. The strong upside appears company-specific, not a broad insurance broker move.

Historical Context

5 past events · Latest: Nov 06 (Negative)

Pattern 5 events

Date	Event	Sentiment	Move	Catalyst
Nov 06	Earnings results	Negative	-21.1%	Q1 FY2026 revenue growth but significantly weaker Adjusted EBITDA and net loss.
Oct 23	Earnings preview	Neutral	+2.0%	Announcement of upcoming fiscal Q1 2026 earnings release and conference call.
Oct 15	Research report	Neutral	-5.0%	Healthcare Select research highlighting care gaps among Medicare-eligible members.
Sep 23	Partnership	Positive	-1.0%	Partnership with Findhelp connecting seniors to social services and support.
Aug 21	Earnings results	Positive	+41.5%	Q4 FY2025 revenue growth and shift to net income despite lower Adjusted EBITDA.

Pattern Detected

Recent history shows large moves around earnings: a 41.53% gain on Q4 FY2025 results and a 21.13% drop on Q1 FY2026, with smaller, mixed reactions to other news.

Recent Company History

Over the last several months, SelectQuote’s key events centered on earnings and strategic initiatives. Q4 FY2025 results with higher revenue and a swing to net income saw shares rise 41.53%, while Q1 FY2026 results with wider Adjusted EBITDA losses led to a 21.13% decline. Interim items like research on care gaps and a social-services partnership produced modest moves. Today’s financing news ties directly to the capital structure discussed in recent filings and may be viewed against prior volatility around fundamentals and leverage.

Market Pulse Summary

The stock dropped -11.1% in the session following this news. A negative reaction despite refinancing...

Analysis

The stock dropped -11.1% in the session following this news. A negative reaction despite refinancing news would fit a pattern where investors focus on leverage and prior losses rather than improved liquidity. Recent results showed revenue growth but weak Adjusted EBITDA and net losses, and debt previously totaled $393.1 million. If the market turned lower, it might reflect concern about long-term profitability and debt service rather than headline facility size, with prior large swings around earnings underscoring sensitivity to fundamentals.

Key Terms

senior secured credit facility, term loan, working capital, asset-based financing

4 terms

senior secured credit facility financial

"serving as the Administrative Agent on a $415 million senior secured credit facility"

A senior secured credit facility is a loan or revolving line of credit where lenders have first legal claim on specific company assets (collateral) and the debt ranks above other obligations for repayment. For investors it signals where a lender sits in the repayment pecking order and how much protection creditors have if the company struggles, affecting credit costs, the company’s ability to borrow more, and potential recoveries in a default — like a mortgage taking priority over other claims on a house.

term loan financial

"As part of the facility, Pathlight underwrote and provided a $325 million term loan."

A term loan is a type of loan that is borrowed for a set period of time, with a fixed schedule for repaying the money, usually in regular payments. It matters to investors because it represents a company's borrowing costs and financial stability; reliable repayment of these loans can indicate strong financial health, while difficulties may signal potential risks.

working capital financial

"used to refinance existing debt and support ongoing working capital needs."

Working capital is the money a business has available to cover its daily expenses, like paying bills and buying supplies. It’s like the cash in your wallet that helps you handle everyday costs; having enough ensures the business can operate smoothly without running into money shortages.

asset-based financing financial

"Pathlight's expertise in providing asset-based financing solutions for financial assets."

Asset-based financing is a loan or line of credit that uses a company’s assets—such as accounts receivable, inventory, or equipment—as collateral to secure borrowing. It matters to investors because it affects a company’s access to cash, borrowing cost and financial risk: like using a car title to get a loan, lenders focus on the quality and value of pledged assets rather than just the company’s profits, which changes how fragile or flexible the business can be under stress.

AI-generated analysis. Not financial advice.

BOSTON, Jan. 13, 2026 /PRNewswire/ -- Pathlight Capital LP ("Pathlight" or "Pathlight Capital") today announced that it is serving as the Administrative Agent on a $415 million senior secured credit facility for SelectQuote, Inc. ("SelectQuote," "SLQT" or the "Company"), a distributor of Medicare insurance policies and owner of a rapidly-growing healthcare services platform. As part of the facility, Pathlight underwrote and provided a $325 million term loan.

Proceeds from the credit facility will be used to refinance existing debt and support ongoing working capital needs.

"Having built a compelling and diversified business in a complex industry, we are confident that the SelectQuote team is well positioned for its next phase of growth, and we look forward to supporting them," said Tyler Harrington, Managing Director at Pathlight Capital.

"We are extremely pleased to partner with Pathlight on this strategically important new financing," said Tim Danker, SelectQuote's Chief Executive Officer. "This funding lowers our cost of capital, improves liquidity and provides SelectQuote capital flexibility to invest in the growth of our industry-leading senior health insurance and differentiated healthcare services businesses."

Christopher Arnold, Managing Director at Pathlight Capital, said, "We believe this transaction is another example of Pathlight's expertise in providing asset-based financing solutions for financial assets. Specialty finance will continue to be an important contributor to Pathlight's growth and expansion."

About Pathlight Capital
Pathlight Capital is a private credit investment manager dedicated to meeting the needs of companies that operate across a broad range of industries by providing asset-based loans secured on a first or second lien basis against tangible and intangible assets. Pathlight aims to provide creative financing solutions to allow management teams to access incremental liquidity for the purposes of funding working capital, debt refinancings, growth, acquisitions, dividends and turnaround strategies. For more information, please visit www.pathlightcapital.com.

About SelectQuote:
Founded in 1985, SelectQuote (NYSE: SLQT) pioneered the model of providing unbiased comparisons from multiple, highly-rated insurance companies, allowing consumers to choose the policy and terms that best meet their unique needs. Two foundational pillars underpin SelectQuote's success: a strong force of highly-trained and skilled agents who provide a consultative needs analysis for every consumer, and proprietary technology that sources and routes high-quality leads. Today, the Company operates an ecosystem offering high touchpoints for consumers across insurance, pharmacy, and virtual care.

With an ecosystem offering engagement points for consumers across insurance, Medicare, pharmacy, and value-based care, the company now has three core business lines: SelectQuote Senior, SelectQuote Healthcare Services, and SelectQuote Life. SelectQuote Senior serves the needs of a demographic that sees around 10,000 people turn 65 each day with a range of Medicare Advantage and Medicare Supplement plans. SelectQuote Healthcare Services is comprised of the SelectRx Pharmacy, a Patient-Centered Pharmacy Home™ (PCPH) accredited pharmacy, SelectPatient Management, a provider of chronic care management services, and Healthcare Select, which proactively connects consumers with a wide breadth of healthcare services supporting their needs.

The information presented in this release is the opinion of Pathlight Capital LP and does not reflect the view of any other person or entity. The above is for information purposes and should not be construed as an investment recommendation. 

This release may contain an endorsement from an individual who may be supporting or recommending the activities of Pathlight Capital LP. Such individual has not been compensated directly or indirectly by Pathlight Capital LP for the use of his statements. The statements represent endorsement by that individual only and may not represent the experience of all counterparties.

View original content to download multimedia:https://www.prnewswire.com/news-releases/pathlight-capital-serves-as-administrative-agent-on-415-000-000-senior-secured-credit-facility-for-selectquote-inc-302658820.html

SOURCE Pathlight Capital

FAQ

What financing did SelectQuote (SLQT) announce on January 13, 2026?

SelectQuote announced a $415,000,000 senior secured credit facility with Pathlight Capital as Administrative Agent.

How much of the SelectQuote (SLQT) facility did Pathlight Capital underwrite on January 13, 2026?

Pathlight underwrote and provided a $325,000,000 term loan as part of the facility.

What will SelectQuote (SLQT) use the $415M credit facility for?

Proceeds will be used to refinance existing debt and to support ongoing working capital needs.

How did SelectQuote (SLQT) say the new financing affects its balance sheet and liquidity?

SelectQuote said the funding lowers its cost of capital, improves liquidity and provides capital flexibility to invest in growth.

Who is the Administrative Agent on SelectQuote's (SLQT) new credit facility?

Pathlight Capital is serving as the Administrative Agent on the $415,000,000 senior secured facility.