Definitive Healthcare Corp. Debt Disclosure

During the years ended December 31, 2024 and 2023, the Company repaid $13.8 million and $8.6 million, respectively, in outstanding principal of the 2021 Term Loan (as defined below).

2021 Credit Agreement

In September 2021, DH Holdings entered into a credit agreement (the “2021 Credit Agreement”) with Bank of America, N.A., as administrative agent, the other lenders party thereto and the other parties specified therein. The 2021 Credit Agreement provides for (i) a $275.0 million term loan A facility (the “2021 Term Loan”) and (ii) a $75.0 million revolving credit facility (the “2021 Revolving Line of Credit” and, together with the 2021 Term Loan, collectively, the “2021 Credit Facilities”), the proceeds of which were used to repay a portion of the indebtedness outstanding under a previous credit agreement. Both the 2021 Term Loan and the 2021 Revolving Line of Credit mature on September 17, 2026. The 2021 Credit Facilities include customary affirmative and negative financial covenants, which, among other limitations, limit DH Holdings’ and its restricted subsidiaries’ ability to sell assets, grant liens on assets, incur other secured indebtedness, and make certain investments, cash dividends, and restricted payments, all subject to exceptions set forth in the 2021 Credit Agreement and a maximum total net leverage ratio financial covenant as set forth in the 2021 Credit Agreement. The 2021 Credit Facilities are guaranteed by all of DH Holdings’ wholly owned domestic restricted subsidiaries and AIDH Buyer, LLC, a Delaware limited liability company and the direct parent company of DH Holdings, in each case, subject to customary exceptions, and are secured by a lien on substantially all of the assets of DH Holdings and the guarantors, including a pledge of the equity of DH Holdings, in each case, subject to customary exceptions (the “Pledged Assets”). As of December 31, 2024, the Pledged Assets of these subsidiaries approximated $976.4 million, and the net assets of these subsidiaries approximated $586.0 million.

The 2021 Term Loan is subject to annual amortization of principal, payable in equal quarterly installments on the last day of each fiscal quarter, commencing on December 31, 2021 (the “Initial Amortization Date”), equal to approximately 2.5% per annum of the principal amount of the term loans in the first year and second year after the Initial Amortization Date and approximately 5.0% per annum of the principal amount of the term loans in the third year, fourth year and fifth year after the Initial Amortization Date. A balloon payment of approximately $220.0 million will be due at the maturity of the 2021 Term Loan. There was $244.1 million and $257.8 million outstanding on the 2021 Term Loan at December 31, 2024 and 2023. respectively.

DH Holdings is required to pay the lenders under the 2021 Credit Agreement an unused commitment fee of between 0.25% and 0.30% per annum on the undrawn commitments under the 2021 Revolving Line of Credit, depending on the total net leverage ratio, quarterly in arrears. The expense is included in interest expense in the statements of operations. There was no outstanding balance on the 2021 Revolving Line of Credit at December 31, 2024 and 2023. However, in lieu of a security deposit, the Company has provided a standby letter of credit of $0.6 million to the lessor of the Company’s corporate headquarters, which reduced the amount available under our revolving credit facility to $74.4 million as of December 31, 2024.

On October 31, 2022, the Company amended the 2021 Credit Agreement to replace the LIBO rate with Term SOFR plus an applicable rate.

For both the 2021 Term Loan and 2021 Revolving Line of Credit, DH Holdings may elect from several interest rate options based on the Term SOFR Rate or the Base Rate plus an applicable margin. The applicable margin is based on the total leverage ratio. As of December 31, 2024, the effective interest rate was 6.21%.

In connection with the 2021 Credit Agreement, the Company capitalized financing costs totaling $3.5 million, of which $2.8 million related to the 2021 Term Loan facility and $0.8 million related to the 2021 Revolving Line of Credit. The financing costs associated with the 2021 Term Loan facility are recorded as a contra-debt balance in Term loan, net of current portion in the consolidated balance sheets and are amortized over the remaining life of the loan using the effective interest method. The financing costs associated with the 2021 Revolving Line of Credit are recorded in other assets in the consolidated balance sheets and are amortized over the life of the arrangement. The Company amortized capitalized financing costs for the 2021 Credit Agreement through interest expense of $0.7 million for the years ended December 31, 2024 and 2023. At December 31, 2024 and 2023, the unamortized financing costs for the 2021 Revolving Line of Credit were $0.3 million and $0.4 million, respectively.