AdaptHealth Corp. Credit Agreement

AdaptHealth Corp., through its subsidiary AdaptHealth LLC, has entered into a new credit agreement, replacing its prior credit facility. The new agreement provides for \$450.0 million in revolving loan commitments, a \$75.0 million letter of credit sublimit, \$325.0 million in initial term loans, and \$325.0 million in delayed draw term loan commitments available for up to two years. The agreement is secured by substantially all of the Loan Parties\' property and assets. The initial term loans will be repaid in quarterly installments, beginning at 0.625% of the principal amount and increasing to 1.250% after the ninth fiscal quarter. Delayed draw term loans will have similar repayment terms based on the borrowing date. The company may also request increases in revolving commitments and additional term loan facilities. Borrowings under the initial term loan facility were used to repay existing indebtedness. Delayed draw term loans can be used to refinance the 2028 Senior Notes and for permitted acquisitions. Revolving loans are for general corporate purposes, including working capital, capital expenditures, and acquisitions. The agreement matures on April 13, 2031, with a springing maturity date tied to the 2028 Senior Notes. It includes customary events of default, representations, warranties, affirmative and negative covenants, and financial maintenance covenants, including a maximum Consolidated Total Leverage Ratio of 3.50:1.00 (or 4.00:1.00 post-acquisition) and a minimum Consolidated Interest Coverage Ratio of 3.00:1.00. Interest rates are based on a fluctuating base rate or Term SOFR, plus an Applicable Margin ranging from 0.125% to 2.000% depending on the Consolidated Total Leverage Ratio. Borrowings can be repaid without premium or penalty, subject to customary breakage costs. Mandatory prepayments are required under certain conditions, including when revolving loan borrowings and letter of credit usage exceed commitments, and in connection with asset dispositions, casualty insurance proceeds, condemnation awards, and unpermitted debt transactions.