EHEALTH, INC. (NASDAQ:EHTH) Files An 8-K Entry into a Material Definitive Agreement

On December 20, 2019, eHealth, Inc. (the “Company”) entered into Amendment No. 3 to Credit Agreement (“Amendment No. 3”), which amends the Credit Agreement, dated as of September 17, 2018, by and among the Company, eHealthInsurance Services, Inc., Wealth, Health and Life Advisors, LLC, as borrowers, PlanPrescriber, Inc., as guarantor, Royal Bank of Canada, as administrative agent and collateral agent, and each lender party thereto (as amended, modified or supplemented, the “Credit Agreement”). Amendment No. 3 amends the Credit Agreement to, among other things, increase the aggregate available commitments under the senior secured revolving credit facility from $40.0 million to $75.0 million, add a new lender, and extend the maturity date to December 20, 2022. Amendment No. 3 also amends certain covenants in the Credit Agreement, including a financial covenant to require the Company to maintain at least $6.0 million of excess availability at all times or, if greater, up to $11.25 million depending on the Company’s borrowing base as determined by its eligible past and future commission receivables. In addition, Amendment No. 3 amends the payment conditions to, among other things, require the Company to have at least $10.0 million of liquidity or, if greater, up to $18.75 million depending on the Company’s borrowing base as determined by its eligible past and future commission receivables, in order for the Company to make certain permitted acquisitions, investments, distributions and payments of indebtedness. Amendment No. 3 also amends the seasonal amount thresholds used in connection with the cash dominion and field examination covenants in the Credit Agreement.

The foregoing description of Amendment No. 3 does not purport to be complete and is qualified in its entirety by reference to the full text of Amendment No. 3, a copy of which is attached hereto as Exhibit 10.1.

The information set forth in Item 1.01 of this Current Report on Form 8-K is incorporated by reference into this Item 2.03.

(d) Exhibits

eHealth, Inc. Exhibit
EX-10.1 2 amendmentno3tocreditagreem.htm EXHIBIT 10.1 Exhibit [Execution]AMENDMENT NO. 3 TO CREDIT AGREEMENTAMENDMENT NO. 3 TO CREDIT AGREEMENT,…
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About EHEALTH, INC. (NASDAQ:EHTH)

eHealth, Inc. provides a private online source of health insurance for individuals, families and small businesses. The Company is the parent company of eHealthInsurance, a private health insurance exchange where individuals, families and small businesses can compare health insurance products from various insurers side-by-side, and purchase and enroll in coverage online through its Websites (www.eHealth.com, www.eHealthInsurance.com, www.eHealthMedicare.com, www.Medicare.com and www.PlanPrescriber.com) or telephonically through its customer care centers. The Company also offers various online and pharmacy-based tools to help seniors navigate Medicare health insurance options, choose the right plan, and enroll in plans online or telephonically. It markets the availability of individual and family, small business and ancillary health insurance plans of various insurance carriers through its e-commerce platforms (www.eHealth.com and www.eHealthInsurance.com).