ModivCare Inc. announced that it has amended its Credit Agreement, dated February 3, 2022 (as amended to date, the ?Credit Agreement?), with JPMorgan Chase Bank, N.A., as administrative agent, along with other key lenders. Key Amendment Highlights: Total Net Leverage Ratio Covenant: Increased for the quarter ended September 30, 2024, to 6.50x from 5.25x; and Minimum Interest Coverage Ratio Covenant: Reduced for the quarter ended September 30, 2024, to 2.00x from 2.75x. This amendment ensures in advance that the Company will maintain its compliance with all of its covenants under the Credit Agreement for the Company?s last completed fiscal quarter.
In consideration, the Company has agreed to increase its interest rate margin by 25 basis points until it delivers the required financial statements and compliance certificate for the fiscal year ending December 31, 2024. In addition to today's amendment, the Company will continue discussions with its bank group on a collaborative long-term relief amendment, anticipated to be finalized in the near term, intended to support ongoing compliance with its financial covenants.