Definitive Healthcare Corp. (NASDAQ:DH), a provider of healthcare analytics and data, has entered into a financing agreement that secures $225 million for the company. The agreement, made with Bank of America, N.A., includes a $175 million term loan facility and a $50 million revolving credit facility, as disclosed in a recent SEC filing.
The facilities were established on Thursday, January 16, 2025, and are intended to repay existing debts and cover related fees and expenses. The new financial obligations are set to mature on the same day in 2030, featuring a lien on substantially all of Definitive Healthcare's assets and those of its guarantors, with certain exceptions.
The term loan will be repaid in quarterly installments starting after the first full fiscal quarter post-closing, with 5.0% of the original principal amount due each year for five years, followed by the balance at maturity. The interest rates on the term and revolving facilities will vary between 1.00% and 1.50% for ABR borrowings and 2.00% to 2.50% for Term SOFR borrowings, with potential step-ups based on the company's leverage ratio.
Definitive Healthcare and its subsidiaries are also bound by standard covenants and default provisions typical for such financial arrangements. This strategic move allows the company to restructure its financial obligations, potentially supporting its growth and operational strategies. The details of the agreement are outlined in the SEC filing, which serves as the source of this information.
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