Long-Term Debt

12 Months Ended

Dec. 31, 2022

Long-Term Debt

Long-term debt was as follows:


	December 31,		December 31,
	2022		2021
	(in millions)
Revolving Facility	$	—	$	—
2021 Term Loan	345.6		349.1
Total debt	345.6		349.1
Unamortized debt issuance costs	(5.1)		(6.0)
Unamortized discount on debt	(3.9)		(4.7)
Total debt, net	336.6		338.4
Less current maturities	(3.5)		(3.5)
Total long-term debt	$	333.1	$	334.9

In June 2021, we refinanced a previously existing credit facility and entered into a new credit agreement (the “2021 Credit Agreement”) with a secured lender syndicate, which, among other things, reduced our total debt outstanding, lowered the interest rate, increased our borrowing capacity under the revolving facility and extended the maturity. The 2021 Credit Agreement includes a term loan of $350.0 million (the “2021 Term Loan”) and a revolving credit facility (the “Revolving Facility”) with a $185.0 million borrowing capacity. We are required to make amortization payments of 0.25% of the aggregate principal amount of the 2021 Term Loan on a quarterly basis, beginning in December 2021. The maturity date of the 2021 Term Loan is June 22, 2028 and the maturity date of the Revolving Facility is June 22, 2026. In connection with the refinancing, we recorded a loss on extinguishment of debt primarily related to the write-off of unamortized debt issuance costs of $5.0 million in our Consolidated Statement of Operations for the year ended December 31, 2021.

As of December 31, 2022 and 2021, the effective interest rate on the 2021 Term Loan borrowings was 7.73% and 3.75%, respectively.

The 2021 Credit Agreement is secured by substantially all of the assets of Signify and its subsidiaries. The 2021 Credit Agreement contains customary representations and warranties as well as customary affirmative and negative covenants and events of default. Negative covenants include, among others (and in each case subject to certain exceptions), limitations on incurrence of liens by Signify and its restricted subsidiaries, limitations on incurrence of indebtedness by Signify and its restricted subsidiaries, limitations on making dividends and other distributions, limitations on engaging in asset sales, limitation on making investments, limitations on engaging in transactions with affiliates. As a result of these restrictions, substantially all of the subsidiary net assets are deemed restricted as of December 31, 2022. Additionally, the 2021 Credit Agreement includes a requirement that the consolidated first lien net leverage ratio (as defined in the 2021 Credit Agreement) as of the end of any fiscal quarter is not greater than

4.50 to 1.00 if on the last day of such fiscal quarter the Revolving Facility and letters of credit outstanding exceeds 35% of the total amount of Revolving Facility commitments at such time. As of December 31, 2022, we were in compliance with all financial covenants.

We currently have no borrowings outstanding under the Revolving Facility. As of December 31, 2022, we had $172.8 million available borrowing capacity under the Revolving Facility, as the borrowing capacity is reduced by outstanding letters of credit. The outstanding letters of credit reducing the available borrowing capacity as of December 31, 2022, includes $9.2 million in favor of CMS related to the discontinued Episodes of Care business. However, this letter of credit is in connection with the BPCI-A program and therefore will remain outstanding until the final reconciliations under the program are released. See Note 4 Discontinued Operations for further details.

The aggregate principal maturities of long-term debt due subsequent to December 31, 2022 are as follows:


	(in millions)
2023	$	3.5
2024	3.5
2025	3.5
2026	3.5
2027	3.5
Thereafter	328.1
	$	345.6