BenefitStreet Restructuring Moves Right Along

BenefitStreet, Inc., secured bridge financing and is now negotiating terms for an additional $10 to $20 million in longer-term funding.

According to the company release, stockholders approved a capital restructuring within the organization. Jerry Bramlett, BenefitStreet’s president and CEO, said he is in ongoing discussions with a number of parties interested in the long-term funding.

In early April, the company announced the sell of one of its third-party administrator (TPA) subsidiaries and plans to sell its remaining TPAs. Bramlett said the company was streamlining to focus on what it does best—defined contribution retirement plan recordkeeping.

In the most recent release, Bramlett said all of the TPAs are under a letter of intent to close by May 30.

In February, Bramlett took the reins of BenefitStreet from Alex Hehmeyer, a board member since 2004 who had been acting as interim CEO and chairman after the sudden departure of firm founder and CEO Jim Drury in 2007. (See Bramlett to Lead BenefitStreet.)