Enhabit amends credit agreement to raise leverage caps and restrict dividends

Enhabit, Inc.

Maximum Total Net Leverage Ratio raised to 5.25x through Dec 2023, stepping to 4.50x by Sep 2024.
New pricing tier added for leverage >4.50x: SOFR margin +2.25%, ABR margin +1.25%.
Restricted payments prohibited before July 1, 2024 unless pro forma leverage ≤4.00x.
Incremental facility ratio condition modified; step-up election available for material acquisitions.
No restricted payments allowed until July 2024 except to borrower/subs or if leverage ≤4.00x.

Key facts

Extracted from this filing and checked against the source text.

Material Agreements SEC 8-K Item 1.01/1.02 confidence 0.9

Enhabit, Inc. amended Amendment with Wells Fargo Bank, National Association, as administrative agent, collateral agent, and swingline lender, and other lenders party thereto (effective 2023-06-27).

Action: amendment
Agreement: credit facility
Counterparty: Wells Fargo Bank, National Association, as administrative agent, collateral agent, and swingline lender, and other lenders party thereto
Effective: 2023-06-27

Exact text from the filing

On June 27, 2023, Enhabit, Inc. (the “Company”) entered into an Amendment (the “Amendment”) to the Credit Agreement, dated as of June 1, 2022, among the Company, Wells Fargo Bank, National Association, as administrative agent, collateral agent, and swingline lender, and other lenders party thereto (such credit agreement, the “Credit Agreement”).

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Source: SEC EDGAR

accession 0001803737-23-000110

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