DLH Holdings Corp. 8-K Filing - Second Amendment to Credit Agreement

DLH Holdings Corp. (the "Company" or "DLH") and its subsidiaries (the "Borrowers") entered into a Second Amendment to their Second Amended and Restated Credit Agreement dated December 8, 2022. The amendment modifies the definitions of Consolidated EBITDA and Total Funded Debt, and adjusts financial covenants. Specifically, Consolidated EBITDA will now include losses related to lease termination and cash restructuring charges incurred in 2026, as well as up to $3,000,000 in pro forma consolidated net income from new material contract awards. Total Funded Debt will exclude undrawn Letters of Credit related to a specific VA contract. Financial covenants have been adjusted to increase the maximum total leverage ratio to 5.0:1.0 for the quarter ending June 30, 2026, and 5.5:1.0 for the quarter ending September 30, 2026. The minimum fixed charge coverage ratio has been reduced to 1.05:1.0 starting from the quarter ending June 30, 2026. The amendment also includes other technical changes, while leaving other material terms of the credit agreement unchanged. As of the amendment date, the principal amount of the secured senior loan was $122,000,000.