CHE · 10-Q · 2026Q1 · Full report

Credit Agreement and Liquidity

CHEMED CORP · 2026-04-28 · Importance 71 · Surprise 60

On April 10, 2026 Chemed replaced its prior credit agreement with a sixth amended and restated Credit Agreement providing a five-year $450.0 million revolving credit facility, including $100.0 million available for letters of credit. The facility carries a floating interest rate tied to SOFR plus a tiered spread and included an expansion feature allowing an additional $250.0 million revolver; as of March 31, 2026 the effective spread was SOFR plus 100 basis points. As of March 31, 2026 Chemed had $45.5 million in standby letters of credit outstanding and approximately $313.3 million of unused credit available under the prior facility that continued to be available. Management reported compliance with all covenants under the prior agreement as of March 31, 2026 and expects to remain in compliance under the new Credit Agreement.

Key facts

• The new Credit Agreement consists of a five-year $450.0 million revolving credit facility including $100.0 million for letters of credit
• The Credit Agreement has an expansion feature that provides the Company the opportunity to increase its revolver by an additional $250.0 million
• On April 10, 2026, the Company replaced the Prior Credit Agreement with a sixth amended and restated Credit Agreement
• We have issued $45.5 million in standby letters of credit as of March 31, 2026 under the Prior Credit Agreement (continued under the Credit Agreement)
• Collectively, the Credit Agreement requires the Company to meet various financial covenants tested quarterly and the Company was in compliance as of March 31, 2026 under the Prior Credit Agreement

Impact estimates