LifeMD, Inc. 8-K

What Happened
LifeMD, Inc. announced it entered into a Credit Agreement with Citizens Bank, N.A. on January 2, 2026 establishing a senior secured revolving credit facility with an initial capacity of up to $30.0 million to support corporate development and shareholder value initiatives. The facility may be increased by up to an additional $20.0 million under the agreement. LifeMD issued a revolving loan note and provided customary security and guarantees from the company and certain subsidiaries. As of the closing date, no amounts had been drawn under the facility. A press release announcing the facility was furnished on January 6, 2026.

Key Details

• Facility size: $30.0 million initial revolving credit facility; upsize option of up to $20.0 million (potential total $50.0M).
• Maturity: January 2, 2029.
• Pricing: variable interest based on chosen benchmark plus margin — Term SOFR margin 1.50%–2.25%; Alternate Base Rate margin 0.50%–1.25%.
• Fees and covenants: commitment fee 0.225%–0.30% on unused capacity (tiered by leverage); financial covenants require Consolidated Leverage Ratio ≤ 2.50:1.00 and Consolidated Interest Coverage Ratio ≥ 3.00:1.00 (measured each quarter starting March 31, 2026).
• Credit support: revolving loan note, pledge and security agreement, and guaranty by subsidiaries; agreement includes customary negative covenants (limits on incurring debt, liens, investments, dispositions) and default provisions.

Why It Matters
This facility gives LifeMD immediate access to a committed source of liquidity to fund acquisitions, investments, or other corporate actions without issuing equity. However, it creates a direct financial obligation and imposes leverage and interest-coverage covenants that could limit flexibility if business performance weakens. Investors should note that no borrowings had been made at closing and should watch for any future draws, covenant compliance disclosures, or use of proceeds that could affect capital structure and dilution.