LifeMD Announces Closing of $50 Million Revolving Credit Facility with Citizens Bank, N.A.

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BullishShort TermCorporate DevelopmentsCASH COVI CURE HMED

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Information

NEW YORK, Jan. 06, 2026 (GLOBE NEWSWIRE) -- LifeMD, Inc. (Nasdaq: LFMD), a leading provider of virtu...

AI Summary

LifeMD, Inc. has secured a $50 million revolving credit facility with Citizens Bank, including an accordion option. The company remains in a solid cash position, supporting its growth initiatives without any initial draw from the credit line, which enhances its financial flexibility and capacity for corporate development.

Trading Thesis

This new credit facility positions LFMD for growth, making it a strong buy.

Market-Moving

LifeMD's new credit facility may boost investor confidence and stock price.
The absence of a drawn balance indicates strong cash management.
Enhanced financial flexibility could lead to strategic acquisitions or investments.
Market may react positively to improved liquidity and growth prospects.
Competitive pricing of the facility could improve profitability margins.

Key Facts

LifeMD has closed a $50 million revolving credit facility.
The maturity date for the facility is January 2, 2029.
As of closing, no balance has been drawn on the facility.
Interest rates on loans range based on leverage indicators.
LifeMD has over 200 treatment offerings across various health conditions.

Companies Mentioned

Citizens Bank, N.A. (N/A): Provided LifeMD with a flexible credit facility supporting growth.

Corporate Developments

This news falls under corporate developments, as it represents a significant financial arrangement that enhances LifeMD's operational capabilities and growth trajectory.

FAQ

Why Bullish?

The closing of a substantial credit facility without any drawn balance indicates financial stability and growth potential, akin to situations seen in other successful healthcare firms utilizing credit for expansion.

How important is it?

The establishment of a revolving credit facility is crucial for operational liquidity and can signal potential for future growth, thus critically impacting the company's market position.

Why Short Term?

The immediate financial flexibility can catalyze growth and drive stock price in the short term, similar to other firms enhancing capability through strategic finance.

Related Companies

CASH COVI CURE HMED

LifeMD Secures $50 Million Revolving Credit Facility with Citizens Bank

NEW YORK, January 6, 2026 - LifeMD, Inc. (Nasdaq: LFMD), a prominent provider of virtual primary care and pharmacy services, has successfully closed a new senior secured revolving credit facility (RCF) amounting to $50 million.

Details of the Credit Facility

The RCF, established with Citizens Bank, N.A., features a maturity date set for January 2, 2029. This credit facility consists of:

$30 million in committed availability.
An additional accordion option of up to $20 million.

At the time of closure, LifeMD had not drawn any balance from this facility, anticipating that its existing cash reserves and projected cash flow will adequately support its organic growth initiatives.

Financial Flexibility and Strategic Support

Marc Benathen, Chief Financial Officer of LifeMD, expressed enthusiasm about the new arrangement, stating, “We are very pleased to close this revolving credit facility with Citizens, a leading national bank. The availability of the additional capital is competitively priced with no upfront fee and provides significant financial flexibility to support potential corporate development and/or shareholder value creation initiatives.”

Benathen emphasized that this arrangement underscores the strength and optimism surrounding the company’s future operations.

Loan Terms and Conditions

The loans under this revolving credit facility will incur interest based on a pricing grid associated with the company’s leverage. The interest rates are structured as follows:

Term SOFR plus a spread from 150 to 225 basis points.
Alternate Base Rate plus a spread from 50 to 125 basis points.

Fees for the committed unused portion range from 0.225% to 0.30%, depending on leverage, and importantly, the RCF incurs no upfront fees for LifeMD.

About LifeMD, Inc.

LifeMD is at the forefront of virtual primary care, providing a range of services, from telemedicine and lab access to pharmacy services. The company addresses over 200 medical conditions, including:

Primary care.
Men’s and women’s health.
Weight management.
Hormone therapy.

By utilizing a vertically integrated digital care platform, LifeMD enhances access to high-quality, affordable healthcare for its patients across the United States.

Forward-Looking Statements

This announcement contains forward-looking statements in accordance with U.S. securities regulations. Such statements are identified by terms like “believe,” “expect,” “anticipate,” and others. These statements reflect the current expectations of LifeMD regarding future plans, performance, and market conditions.

LifeMD urges caution as these projections come with inherent risks and uncertainties that could cause actual results to differ significantly. Investors should review these statements alongside the “Risk Factors” outlined in the company's filings with the SEC, including its latest Annual Report on Form 10-K and Quarterly Reports on Form 10-Q.