HealthStream, Inc. entered into the Second Amendment to its Amended and Restated Revolving Credit Agreement on September 10, 2026. The amendment modifies the original agreement dated October 6, 2023, and is executed by the Company, its domestic subsidiaries as guarantors, and Truist Bank, which serves as the Administrative Agent, Issuing Bank, and Swingline Lender.
The Amended Credit Agreement establishes a revolving loan facility with a maximum principal amount of $50 million. This total includes a $5 million sublimit for swingline loans and a $5 million sublimit for standby letters of credit. The Company retains the option to increase the facility availability by up to an additional $25 million, contingent upon securing lender commitments. The facility matures on September 10, 2031.
Borrowings under the agreement are unsecured. Interest rates are determined at the Company's option, either based on a base rate or a secured overnight financing rate (SOFR), plus an applicable margin. The initial applicable margins are 0.50% for base rate loans and 1.50% for SOFR loans. These margins adjust quarterly based on the Company's net funded debt leverage ratio.
The agreement imposes specific financial covenants. The Company must maintain a net funded debt leverage ratio of no more than 3.00 to 1.00 and an interest coverage ratio of not less than 3.00 to 1.00. The document also outlines customary events of default, including payment failures, breaches of representations, covenant violations, and certain bankruptcy or insolvency events.
