On May 2, 2022, Computer Programs and Systems, Inc. entered into a First Amendment to the Amended and Restated Credit Agreement, dated as of June 16, 2020, by and among the Company, certain subsidiaries of the Company, as guarantors, Regions Bank, as administrative agent and collateral agent and various other lenders from time to time, which modified certain terms of the Company's existing credit agreement, including the following amendments: The maximum borrowing capacity under the revolving credit facility increased from $110 million to $160 million. The outstanding principal balance of the term loan facility decreased from $75 million to $70 million, and the lenders provided an additional $1.6 million advance under the term loan. The interest rate provisions reflect the transition from LIBOR to SOFR as the new benchmark interest rate for each loan.

The collateral required to be delivered by the Company and its Subsidiary Guarantors no longer includes mortgages and related documents granting the lenders a security interest in the subject real property interests. The term Consolidated EBITDA” was changed to remove the required treatment of capitalized software development costs as expenses for purposes of compliance with the credit facility in order to align the term's definition with more conventional measures of EBITDA, including the Company's publicly-disclosed Adjusted EBITDA. Consequently, capitalized software development costs are now treated in a manner similar to capital expenditures for purposes of calculating the Consolidated Fixed Charge Coverage Ratio.

The limitation on Qualified Cash to be held by the Company and Subsidiary Guarantors which may count toward reducing the Consolidated Net Leverage Ratio covenant was increased from $10 million to $20 million in the aggregate. The maturity date for both the revolving credit and term loan facilities changed from June 16, 2025, to May 2, 2027. The principal amortization payments of the term loan facility due between June 30, 2022 and March 31, 2027 decreased, such that all of these payments are now equal.