National Research Corporation Enters into Credit Agreement with $140 Million in Facilities

National Research Corporation (NASDAQ: NRC) announced that on February 6, 2025, it entered into a credit agreement amending and restating the terms of its existing credit facility dated May 28, 2020. This agreement, with a group of lenders and First National Bank of Omaha as agent, provides for a $30 million revolving credit facility and a $110 million delayed draw-down term facility, totaling $140 million in credit facilities.

The Delayed Draw Term Loan consists of an accordion feature that allows National Research Corporation to request an increase of up to $25 million or the Company’s EBITDA of the preceding four fiscal quarters, exercisable in increments of $10 million. As of the closing date, around $3.5 million was outstanding under the Revolving Loan.

The Revolving Loan, with a maturity date set for the third anniversary of the closing date, will bear interest at a floating rate based on the one-month Term SOFR plus a percentage per annum determined by the company’s cash flow leverage ratio. The Delayed Draw Term Loan, with a maturity date of five years from the closing date, will also bear interest at the Term SOFR plus a percentage per annum based on the cash flow leverage ratio.

Additionally, National Research Corporation is obligated to pay ongoing unused commitment fees quarterly based on the daily portions of the Revolving Loan and the Delayed Draw Term Loan. The Credit Facilities are secured by a first-priority lien on the company’s assets, subject to certain exceptions.

The Credit Agreement includes customary representations, warranties, covenants (including financial covenants), and events of default. It also specifies financial covenants related to the fixed charge coverage ratio and cash flow leverage ratio. The company must maintain a minimum fixed charge coverage ratio of 1.10x and a cash flow leverage ratio of 3.50x or less throughout the term(s) of the Credit Facilities.

This announcement does not provide complete details of the Credit Agreement. For full information, refer to the Exhibit 10.1 attached to the Form 8-K filing with the Securities and Exchange Commission.

This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read National Research’s 8K filing here.

National Research Company Profile

National Research Corporation provides analytics and insights that facilitate measurement and enhancement of the patient and employee experience. Its portfolio of subscription-based solutions provides actionable information and analysis to healthcare organizations across a range of mission-critical, constituent-related elements, including patient experience, service recovery, care transitions, employee engagement, reputation management, and brand loyalty.