Item 1.01. Entry into a Material Definitive Agreement.

On November 14, 2022, The Beauty Health Company, a Delaware corporation (as successor by assumption to HydraFacial LLC (formerly known as Edge Systems LLC), a California limited liability company ("HydraFacial" and the "Initial Borrower") (the "Borrower," "Company," "we" or "our"), as borrower, entered into an Amended and Restated Credit Agreement (the "Credit Agreement") with JPMorgan Chase Bank, N.A. (the "Administrative Agent"). The Initial Borrower and the Administrative Agent were party to that certain Credit Agreement, dated as of December 30, 2021 (as it may be amended, restated, supplemented or modified from time to time, the "Original Credit Agreement").

The Borrower, HydraFacial, the other loan parties thereto, the lenders party thereto, and the Administrative Agent have agreed (a) to enter into the Amended and Restated Credit Agreement in order to (i) amend and restate the Original Credit Agreement in its entirety, (ii) extend the maturity date with respect to the existing revolving credit facility under the Original Credit Agreement to November 14, 2027, (iii) re-evidence the "Obligations" under, and as defined in, the Original Credit Agreement, which shall be repayable in accordance with the terms of the Amended and Restated Credit Agreement, (iv) set forth the terms and conditions under which the lenders will, from time to time, make loans and extend other financial accommodations to or for the benefit of the Borrower and (v) transition from LIBOR to the secured overnight financing rate (SOFR), and (b) (i) that the Borrower shall assume all of the rights and "Obligations" of the Initial Borrower under, and as each such term is defined in, the Original Credit Agreement and (ii) that the Initial Borrower shall be released and discharged solely from the obligations of the "Borrower" under, and as defined in, the Original Credit Agreement, and shall be a subsidiary guarantor and a loan party thereunder.

The Amended and Restated Credit Agreement provides for a $50 million revolving credit facility with a maturity date of November 14, 2027. In addition, the Borrower has the ability from time to time to increase the revolving commitments or enter into one or more tranches of term loans up to an additional aggregate amount not to exceed $50 million, subject to receipt of lender commitments and certain conditions precedent. As of the date of this Current Report on Form 8-K, no amount was ever drawn under the Original Credit Agreement, and the Amended and Restated Credit Agreement remains undrawn and there is no outstanding balance under the revolving credit facility.

Borrowings under the Amended and Restated Credit Agreement are secured by certain collateral of the Loan Parties and are guaranteed by all of the Company's domestic subsidiaries, each of whom will derive substantial benefit from the revolving credit facility. In specified circumstances, additional guarantors are required to be added. The Amended and Restated Credit Agreement contains various restrictive covenants subject to certain exceptions, including limitations on the Borrower's ability to incur indebtedness and certain liens, make certain investments, become liable under contingent obligations in certain circumstances, make certain restricted payments, make certain dispositions within guidelines and limits, engage in certain affiliate transactions, alter its fundamental business or make certain fundamental changes, and requirements to maintain financial covenants, including maintaining a leverage ratio of no greater than 3.00 to 1.00 and maintaining a fixed charge coverage ratio of not less than 1.15 to 1.00.

The leverage ratio also determines pricing under the Amended and Restated Credit Agreement. At the Borrower's option, borrowings under the revolving credit facility accrue interest at a rate equal to either Term SOFR Rate or a specified base rate plus an applicable margin. The applicable margin is linked to the leverage ratio. The margins range from 1.50% to 2.00% per annum for Term SOFR Rate loans and 0.50% to 1.00% per annum for base rate loans. The revolving credit facility is subject to a commitment fee payable on the unused revolving credit facility commitments ranging from 0.25% to 0.35%, depending on the Borrower's leverage ratio. The Borrower is also required to pay certain fees to the Administrative Agent and letter of credit issuers under the revolving credit facility. During the term of the revolving credit facility, the Borrower may borrow, repay, and re-borrow amounts available under the revolving credit facility, subject to voluntary reductions of the swing line, letter of credit, and revolving credit commitments.

In addition, the Amended and Restated Credit Agreement includes events (including, without limitation, a non-payment under the loan, a breach of warranties and representations in any material respect, non-compliance with covenants by a loan party, cross-default for payment defaults and cross-acceleration for other defaults under material debt or a change of control) which, if not cured within the time period, if any, specified would constitute an event of default. Upon the occurrence of such events of default, the Borrower could not request borrowings and the lenders may elect to accelerate the outstanding principal and accrued and unpaid interest under the revolving credit facility. Further, outstanding principal and accrued and unpaid interest thereon automatically accelerate upon the entry of an order for relief with respect to any loan party under any bankruptcy, insolvency or other similar law.

The above summary of the Amended and Restated Credit Agreement does not purport to be complete and is qualified in its entirety by reference to the full text of the Amended and Restated Credit Agreement, a copy of which is attached as Exhibit 10.1 to this Current Report on Form 8-K and incorporated herein by reference.

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Item 2.03. Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant.

The information set forth under Item 1.01 above is hereby incorporated into this Item 2.03 by reference.

Item 9.01. Financial Statements and Exhibits.



(d) Exhibits.

Exhibit No.                                                   Description
  10    .1                         Amended and Restated Credit Agreement, dated as of November 14,
                                 2022, among The Beauty Health Company, a Delaware corporation (as
                                 successor by assumption to HydraFacial LLC (formerly known as Edge
                                 Systems LLC), a California limited liability company), as borrower,
                                 the other loan parties thereto, the lenders party thereto, and
                                 JPMorgan Chase Bank, N.A., as administrative agent
104                              Cover Page Interactive Data File (embedded within the Inline XBRL
                                 document)

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