On November 3, 2023, Apollo Medical Holdings, Inc. entered into a Third Amendment to Amended and Restated Credit Agreement and Incremental Agreement (the credit agreement amendment) with the banks and other financial institutions party thereto and Truist Bank, as administrative agent (the Administrative Agent), which amends the Amended and Restated Credit Agreement, dated as of June 16, 2021, entered into among the Company, the lenders party thereto and the Administrative Agent (as amended, the credit agreement). The Credit Agreement Amendment provides a new term loan to the company in an aggregate amount of up to $300.0 million, with $180.0 million funded at the closing of the Credit Agreement Amendment, and $120.0 million available to be drawn by the Company as delayed draw loans during the six months subsequent to the closing of the Credit Agreement Amendment (collectively, the New Term Loan). The New Term Loan matures on November 3, 2028 (or such earlier date on which it is terminated in accordance with the provisions of the Credit Agreement) and amortizes quarterly at 5% per annum for each of the first two years, 7.5% per annum for years three and four, and 10% per annum for year five.

Proceeds of the New Term Loan will be used to refinance outstanding revolving loans under the Credit Agreement (the Revolving Line of Credit) and for certain permitted acquisitions and share repurchases. The Company will pay a quarterly ticking fee on the delayed draw portion of the New Term Loan in an amount equal to 0.375% per annum multiplied by the average daily unused portion of delayed draw maximum amount. The New Term Loan will be secured by substantially all assets of the company and subsidiaries of the company that are not designated as immaterial subsidiaries.

The New Term Loan bears interest at an annual rate equal to either, at the company?s option, (a) the Term SOFR Reference Rate (as defined in the Credit Agreement Amendment), adjusted for any Term SOFR Adjustment (as defined in the Credit Agreement Amendment), plus a spread from 1.50% to 2.75%, as determined on a quarterly basis based on the company?s leverage ratio, or (b) a base rate, plus a spread of 0.50% to 1.75%, as determined on a quarterly basis based on the company?s leverage ratio.