HealthStream, Inc. Enters into an Amended and Restated Revolving Credit Agreement
October 10, 2023 at 04:30 pm EDT
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On October 6, 2023, HealthStream, Inc. entered into an Amended and Restated Revolving Credit Agreement dated as of October 6, 2023, by and among the Company, as Borrower, certain lenders party thereto from time to time, and Truist Bank., as Administrative Agent for the lenders (the ?New Credit Agreement?). The credit facility provided pursuant to the New Credit Agreement (the ?New Credit Facilities?) effectively replaces the Company?s existing senior secured credit facility. The New Credit Facility consists of revolving loans in the maximum principal amount of $50 million, with a $5 million sublimit for swingline loans and a $5 million sublimit for the issuance of standby letters of credit.
In addition, the Company has an option to increase the availability under the revolving credit facility in an aggregate amount not to exceed $25 million, subject to obtaining lender commitments for any such increase. The New Credit Facilities mature on October 6, 2026. Interest and Fees The Company?s borrowings under the New Credit Facilities, other than the swingline loans, bear interest at rates that, at the Company?s option, can be either: a base rate defined as the higher of (a) the rate which the Administrative Agent announces from time to time as its prime lending rate, as in effect from time to time, or (b) the Federal Funds Rate, as in effect from time to time, plus one-half of one percent (0.50%) per annum (any changes in such rates to be effective as of the date of any change in such rate), plus in each case an applicable margin that varies with the company?s funded debt leverage ratio; or a term secured overnight financing rate (?SOFR?) defined as the greater of (a)(i) the forward-looking term rate based on SOFR determined as of the reference time for such interest period with a term equivalent to such interest period plus (ii) a term SOFR adjustment equal to 0.10% per annum and (b) zero, plus, in each case, an applicable margin that varies with the Company?s consolidated total leverage ratio.
The Company?s borrowings under the swingline loans bear interest at the base rate plus the applicable margin. The initial applicable margin for base rate loans is 50%, and the initial applicable margin for SOFR loans is 1.50%. The applicable margins will be adjusted quarterly, in each case two (2) business days after the Administrative Agent?s receipt of the Company?s quarterly financial statements.
HealthStream, Inc. provides platform-delivered workforce solutions. Its solutions include Software-as-a-Service (SaaS), subscription-based applications used by healthcare organizations to meet a range of their workforce development needs around learning, clinical development, credentialing, and scheduling. Its content libraries allow customers to subscribe to an array of courseware, which includes content from healthcare and nursing associations, medical and healthcare publishers, and other content providers. Its scheduling solutions provide customers with real-time visibility into clinical staff scheduling. Its credentialing, privileging, and enrollment solution, CredentialStream, provides customers a user experience with a continual stream of enhancements, evidence-based content, and curated data, which provides healthcare organizations with tools to support the provider lifecycle management from recruiting, application submission, verification of licensure, and other credentials.
HEALTHSTREAM, INC. 
