Sterling Check Corp. announced a $700 million refinancing of the Company's credit facility. These distinct yet complementary strategic initiatives will enhance Sterling's financial position and flexibility by optimizing the Company's capital structure and allocation capacity.

Sterling completed a refinancing of its existing debt via a $300 million Term Loan A Facility and a $400 million Revolving Credit Facility. The new structure extends the Company's debt maturity profile to November 2027, increases the Company's credit capacity, and is expected to reduce the Company's annual interest expense. The Company's total debt and net leverage are unchanged as a result of the transaction.

Interest on the new credit facility will be based on a Total Net Leverage grid and will initially bear interest at the Secured Overnight Financing Rate (“SOFR”) plus a credit spread adjustment plus 2.25%. In the near term, Sterling plans to enter into an interest rate hedging arrangement to substantially fix the facility's interest rate.