DRCT enters loan amendment, waives multiple defaults, adds $4M fee to principal

Direct Digital Holdings, Inc.

Outstanding term loans $10.3M; $4M amendment fee added to principal, bears interest at Term Loan Rate + 2%.
Existing defaults waived: missed minimum cash, EBITDA covenants, non-payment of interest/fees, missing independent director.
Financial covenants modified: removed minimum quarterly EBITDA and sell-side revenue covenant for Q4 2025.
No principal payments due Q1/Q2 2026; payments resume Q3 2026, maturity September 30, 2026.
Preferred equity conversion terms amended; Lafayette Square holds $27.1M Series A preferred plus $1.2M accrued dividends.

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

Direct Digital Holdings, Inc. amended Eleventh Amendment and Waiver to Term Loan and Security Agreement with Lafayette Square Loan Servicing, LLC valued at $4.0 million amendment fee (effective 2026-01-27).

Action: amendment
Agreement: credit facility
Counterparty: Lafayette Square Loan Servicing, LLC
Value: $4.0 million amendment fee
Effective: 2026-01-27

Exact text from the filing

On January 27, 2026, Direct Digital Holdings, LLC (“ DDH LLC ”), as borrower, entered into the Eleventh Amendment and Waiver to Term Loan and Security Agreement (the “ Eleventh Amendment ”) to the Term Loan and Security Agreement dated December 3, 2021 (the “ Term Loan Facility ”) with Direct Digital Holdings, Inc. (the “ Company ”), Colossus Media, LLC, Huddled Masses LLC and Orange142, LLC, as guarantors (such guarantors together with DDH LLC, the “ Credit Parties ”), and Lafayette Square Loan Servicing, LLC (“ LS ”), as administrative agent, and Lafayette Square USA, Inc. (“ Lafayette ”) and the other lenders from time to time party thereto.

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Direct Digital Holdings, Inc. filing history →

Source: SEC EDGAR

accession 0001880613-26-000011

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