DLH Holdings Corp. 8-K

What Happened

• DLH Holdings Corp. announced a Second Amendment (effective June 11, 2026; filed June 17, 2026) to its Second Amended and Restated Credit Agreement with First National Bank of Pennsylvania as administrative agent and other lenders. The secured credit facility originally consisted of a $190.0 million syndicated term loan and a $50.0 million revolving credit facility (including a $10.0 million swingline). As of the amendment date the term loan principal had been amortized to $122.0 million. The amendment modifies definitions used to calculate covenant metrics and adjusts certain financial covenants for the near term.

Key Details

• Amendment date: June 11, 2026; 8‑K filed June 17, 2026.
• Consolidated EBITDA definition changed to add: (i) losses/expenses/non‑cash charges from the termination of the Silver Spring, MD lease and cash restructuring charges (including termination costs) incurred during fiscal quarters ending in 2026; and (ii) up to $3.0 million of pro forma consolidated net income from any material contract award entered into after the amendment.
• Total Funded Debt definition amended to exclude undrawn Letters of Credit related to the VA Consolidated Mail Outpatient Pharmacy (CMOP) contracts.
• Covenant adjustments: maximum total leverage ratio increased to 5.0:1 for the quarter ending June 30, 2026 and to 5.5:1 for the quarter ending September 30, 2026; minimum fixed charge coverage ratio lowered to 1.05:1 from June 30, 2026 through September 30, 2026.
• The Amended Credit Agreement remains secured by substantially all assets of the company and its operating subsidiaries; no other material terms were changed.

Why It Matters

• The amendment eases short‑term covenant pressure by allowing specific add‑backs to Consolidated EBITDA and by loosening leverage and coverage thresholds for the next two quarters. That reduces the near‑term risk of a covenant breach while the company records restructuring and lease‑termination costs and pursues new contracts.
• Investors should note the facility remains secured and principal has been substantially reduced to $122.0 million, but the changes reflect the company managing liquidity and covenant positions rather than obtaining new capital.