UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM
CURRENT REPORT
Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
Date of Report
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Registrant’s Telephone Number, Including Area Code:
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(Former Name or Former Address, if Changed Since Last Report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instructions A.2. below):
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Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
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Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
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Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
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Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Securities registered pursuant to Section 12(b) of the Act:
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Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).
Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 1.01 Entry Into a Material Definitive Agreement.
On May 17, 2022, NextGen Healthcare, Inc. (the “Company”) entered into that certain Amendment No. 1 to Credit Agreement (the “First Amendment”) with JPMorgan Chase Bank, N.A., as administrative agent (in such capacity, the “Administrative Agent”), and the lenders party thereto. The First Amendment amends the company’s existing credit agreement dated March 12, 2021 (the “Credit Agreement”) with the Administrative Agent and the lenders from time to time party thereto.
The First Amendment modifies the Credit Agreement to increase the Company’s net leverage ratio maintenance covenant from 3.75x to 4.00x, and increase the related adjusted covenant period option (available upon the consummation of certain acquisitions) from 4.25x to 4.75x, in each case, commencing with the reporting period ending June 30, 2022. The First Amendment also makes certain updates to the conditions restricting the making of certain dividends, distributions, and other restricted payments by the Company so that such conditions are based on the Company’s net leverage ratio (as set forth in the Credit Agreement) rather than the Company’s total leverage ratio, to increase the dollar cap for such restricted payments that can be made without satisfying leverage conditions from $11,500,000 to $25,000,000, and to increase flexibility in cash netting calculations in connection with the making of restricted payments.
The above description of the First Amendment does not purport to be complete and is qualified in its entirety by reference to the First Amendment, which is expected to be filed with the Securities and Exchange Commission as an exhibit to the Company’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2022.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits
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Exhibit No. |
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Description |
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104 |
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Cover Page Interactive Data File (embedded within the Inline XBRL document). |
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
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Date: May 20, 2022 |
NEXTGEN HEALTHCARE, INC. |
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By: |
/s/ Jeffrey D. Linton |
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Jeffrey D. Linton |
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General Counsel and Secretary |
Document and Entity Information |
May 17, 2022 |
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| Cover [Abstract] | |
| Document Type | 8-K |
| Amendment Flag | false |
| Document Period End Date | May 17, 2022 |
| Entity Registrant Name | NEXTGEN HEALTHCARE, INC. |
| Entity Central Index Key | 0000708818 |
| Entity Emerging Growth Company | false |
| Entity File Number | 001-12537 |
| Entity Incorporation State Country Code | DE |
| Entity Tax Identification Number | 95-2888568 |
| Entity Address, Address Line One | 3525 Piedmont Rd. |
| Entity Address, Address Line Two | NE |
| Entity Address, Address Line Three | Building 6, Suite 700 |
| Entity Address, City or Town | Atlanta |
| Entity Address, State or Province | GA |
| Entity Address, Postal Zip Code | 30305 |
| City Area Code | (404) |
| Local Phone Number | 467-1500 |
| Written Communications | false |
| Soliciting Material | false |
| Pre Commencement Tender Offer | false |
| Pre Commencement Issuer Tender Offer | false |
| Security 12b Title | Common Stock (Par Value $0.01) |
| Trading Symbol | NXGN |
| Security Exchange Name | NASDAQ |