The Honest Company, Inc. – Amendment to Credit Agreement and Security Agreement

The Honest Company, Inc. has entered into a First Amendment to its Credit Agreement and Pledge and Security Agreement, originally dated January 25, 2023. The amendments, effective March 31, 2026, extend the maturity date of the senior secured revolving credit facility, modify the borrowing formula, and adjust the interest rate. The credit facility has a commitment amount of up to $35.0 million, with an option to increase it by an additional $35.0 million. The facility matures on March 31, 2029, and is secured by substantially all of the company's and its domestic subsidiaries' assets. The agreement includes customary covenants, such as financial covenants related to fixed charge coverage and leverage ratios, and restrictions on asset sales, investments, and other payments. The interest rate options are based on Adjusted Term SOFR Rate or CB floating rate, with margins determined by the company's leverage ratio.