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

Rhea-AI Summary

LifeMD (Nasdaq: LFMD) closed a new senior secured revolving credit facility with Citizens Bank providing up to $50 million of total availability, consisting of $30 million committed availability plus an accordion option of up to $20 million. The facility matures on January 2, 2029. As of closing, no amount was drawn and the company stated it expects existing cash and cash flow to fund organic growth. Interest is priced on a leverage-linked grid at either Term SOFR +150–225 bps or Alternate Base Rate +50–125 bps, with unused-commitment fees of 0.225%–0.30% and no upfront fee.

Positive

• $50M total availability including $30M committed
• Facility includes $20M accordion option
• No draws at close; preserves existing cash balances
• No upfront fee reduces initial financing cost

Negative

• Interest spread up to 225 bps increases borrowing cost if drawn
• Unused-commitment fees of up to 0.30% create ongoing costs
• Pricing tied to leverage could raise rates if leverage increases
• Maturity on Jan 2, 2029 creates future refinancing risk

Key Figures

Revolving credit facility size: $50 million Committed availability: $30 million Accordion option: $20 million +5 more

8 metrics

Revolving credit facility size $50 million Total availability under new senior secured RCF

Committed availability $30 million Committed portion of RCF

Accordion option $20 million Uncommitted accordion under RCF

Facility maturity January 2, 2029 Final maturity date of RCF

Term SOFR spread range 150–225 basis points Spread over Term SOFR based on leverage

Alternate Base Rate spread 50–125 basis points Spread over Alternate Base Rate based on leverage

Unused commitment fee 0.225%–0.30% Fee on committed undrawn portion of facility

Drawn balance at closing $0 No borrowings outstanding on RCF at close

Market Reality Check

Price: $22.50 Vol: Volume 2,601,359 is 2.02x...

high vol

$22.50 Last Close

Volume Volume 2,601,359 is 2.02x the 20-day average of 1,285,401 shares before this news. high

Technical Shares at $3.91 were trading below the 200-day MA of $7.39, well under the $15.84 52-week high.

Peers on Argus

LFMD was up 12.03% pre-news, while peers showed mixed, smaller moves (e.g., SLP ...

LFMD was up 12.03% pre-news, while peers showed mixed, smaller moves (e.g., SLP +5.15%, SOPH -2.13%), indicating a stock-specific move rather than a broad sector rotation.

Historical Context

5 past events · Latest: Dec 26 (Neutral)

Pattern 5 events

Date	Event	Sentiment	Move	Catalyst
Dec 26	Preferred dividend	Neutral	-12.5%	Declared cash dividend on 8.875% Series A preferred shares.
Nov 24	Awards/recognition	Positive	+3.1%	Recognition by Deloitte Fast 500 and TIME for revenue growth.
Nov 17	Earnings results	Positive	+2.2%	Q3 2025 revenue and EBITDA growth with debt reduction and cash build.
Nov 17	Commercial partnership	Positive	+2.2%	Expanded GLP-1 collaboration with Novo Nordisk and new pricing offer.
Nov 10	Conference participation	Neutral	-2.1%	BTIG Digital Health Forum participation and panel appearance.

Pattern Detected

LFMD has tended to rise on clearly positive fundamentals and recognition news, while more neutral announcements (dividend, conference participation) have sometimes seen negative next-day moves.

Recent Company History

Over the last several months, LifeMD reported stronger Q3 2025 results with revenue of $60.2M and improved profitability, divested most of WorkSimpli at an enterprise value of $65.0M, and highlighted growth in virtual care and GLP-1 offerings. Recognition from Deloitte and TIME underscored revenue growth and financial stability. A preferred dividend and conference participation had mixed share reactions. The new revolving credit facility adds another balance-sheet tool alongside prior debt repayment and cash generation.

Market Pulse Summary

This announcement adds a senior secured revolving credit facility of up to $50 million, including $3...

Analysis

This announcement adds a senior secured revolving credit facility of up to $50 million, including $30 million committed and a $20 million accordion, maturing in 2029. With no balance drawn at closing, it expands liquidity without immediate borrowing. In context of prior debt repayment, improved Q3 2025 results, and the WorkSimpli divestiture, investors may watch how and when this capacity is used and how it interacts with leverage-linked pricing.

Key Terms

revolving credit facility, senior secured, accordion option, term sofr, +1 more

5 terms

revolving credit facility financial

"announced the closing of a new senior secured revolving credit facility"

A revolving credit facility is a type of loan that a business can borrow from whenever it needs money, up to a set limit. It’s like having a credit card for companies—allowing them to borrow, pay back, and borrow again as needed, providing flexibility for managing cash flow or funding short-term expenses.

senior secured financial

"the closing of a new senior secured revolving credit facility"

Senior secured describes a loan or bond that has first claim on a company’s assets and is backed by specific collateral, like a mortgage on property. For investors, that means they are paid before other creditors if the company struggles or is liquidated, reducing the chance of loss compared with unsecured or junior debt. Think of it as a front-of-the-line, collateral-backed claim that typically carries lower interest because of that added protection.

accordion option financial

"committed availability with an additional accordion option of up to $20 million"

An accordion option is a contractual right built into a financing agreement that lets a company expand the number or size of securities it can issue — for example adding more shares or increasing a loan facility — without a separate, lengthy approval process. Think of it like an accordion instrument that can stretch when needed; for investors it matters because exercising the option can change the supply of securities, dilute existing ownership, and alter future fundraising and control dynamics.

term sofr financial

"loans under the facility bear interest based on either (x) Term SOFR plus an applicable spread"

Term SOFR is a benchmark interest rate that reflects the cost of borrowing money over a specific period, based on actual transactions in the financial markets. It is used by lenders and borrowers to set the interest rates on loans and financial contracts, helping to ensure rates are fair and transparent. For investors, understanding term SOFR helps gauge borrowing costs and the overall direction of interest rates in the economy.

basis points financial

"an applicable spread ranging between 150 basis points and 225 basis points"

Basis points are a way to measure small changes in interest rates or percentages, where one basis point equals 0.01%. For example, if a loan's interest rate increases by 50 basis points, it's gone up by 0.50%. They help people understand tiny differences in rates that can add up over time, making financial comparisons clearer.

AI-generated analysis. Not financial advice.

NEW YORK, Jan. 06, 2026 (GLOBE NEWSWIRE) -- LifeMD, Inc. (Nasdaq: LFMD), a leading provider of virtual primary care and pharmacy services, today announced the closing of a new senior secured revolving credit facility (“RCF”) with Citizens Bank, N.A. (“Citizens”). The facility has a maturity date of January 2, 2029 and provides for up to $50 million of total availability consisting of $30 million of committed availability with an additional accordion option of up to $20 million. As of closing, no balance was drawn on the RCF as the Company believes its cash on hand and expected cash flow are sufficient to fund its organic growth initiatives.

“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. We appreciate the support and confidence of Citizens in providing this facility and believe the RCF further underscores the strength and outlook of our business,” said Marc Benathen, Chief Financial Officer of LifeMD.

Based on a pricing grid tied to Company leverage, loans under the facility bear interest based on either (x) Term SOFR plus an applicable spread ranging between 150 basis points and 225 basis points or (y) the Alternate Base Rate plus an applicable spread ranging between 50 basis points and 125 basis points. Fees assessed on the committed unused portion of the facility range from 0.225% to 0.30%, depending upon leverage. The RCF contains no upfront fee to LifeMD.

About LifeMD, Inc.

LifeMD^® is a leading provider of virtual primary care. LifeMD offers telemedicine, access to laboratory and pharmacy services, and specialized treatment across more than 200 conditions, including primary care, men’s and women's health, weight management, and hormone therapy. The Company leverages a vertically integrated, proprietary digital care platform, a 50-state affiliated medical group, a state-of-the-art affiliated compounding pharmacy, and a U.S.-based patient care center to increase access to high-quality and affordable care. For more information, please visit LifeMD.com.

Cautionary Note Regarding Forward Looking Statements

This news release includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended; Section 21E of the Securities Exchange Act of 1934, as amended; and the safe harbor provision of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements contained in this news release may be identified by the use of words such as: “believe,” “expect,” “anticipate,” “project,” “should,” “plan,” “will,” “may,” “intend,” “estimate,” predict,” “continue,” and “potential,” or, in each case, their negative or other variations or comparable terminology referencing future periods. Examples of forward-looking statements include, but are not limited to, statements regarding our financial outlook and guidance, short and long-term business performance and operations, future revenues and earnings, regulatory developments, legal events or outcomes, ability to comply with complex and evolving regulations, market conditions and trends, new or expanded products and offerings, growth strategies, underlying assumptions, and the effects of any of the foregoing on our future results of operations or financial condition.

Forward-looking statements are not historical facts and are not assurances of future performance. Rather, these statements are based on our current expectations, beliefs, and assumptions regarding future plans and strategies, projections, anticipated and unanticipated events and trends, the economy, and other future conditions, including the impact of any of the aforementioned on our future business. As forward-looking statements relate to the future, they are subject to inherent risk, uncertainties, and changes in circumstances and assumptions that are difficult to predict, including some of which are out of our control. Consequently, our actual results, performance, and financial condition may differ materially from those indicated in the forward-looking statements. These risks and uncertainties include, but are not limited to, “Risk Factors” identified in our filings with the Securities and Exchange Commission, including, but not limited to, our most recently filed Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, and any amendments thereto. Even if our actual results, performance, or financial condition are consistent with forward-looking statements contained in such filings, they may not be indicative of our actual results, performance, or financial condition in subsequent periods.

Any forward-looking statement made in the news release is based on information currently available to us as of the date on which this release is made. We undertake no obligation to update or revise any forward-looking statement, whether as a result of new information, future events, or otherwise, except as may be required under applicable law or regulation.

Investor Contact
Marc Benathen, Chief Financial Officer
marc@lifemd.com

Media Contact
Jessica Friedeman, Chief Marketing and Product Officer
press@lifemd.com

FAQ

What did LifeMD (LFMD) announce on January 6, 2026 regarding financing?

LifeMD closed a senior secured revolving credit facility with Citizens Bank providing up to $50 million in total availability.

How much committed availability does the LifeMD (LFMD) credit facility include?

The facility includes $30 million of committed availability plus an accordion option of up to $20 million.

When does LifeMD's (LFMD) revolving credit facility mature and is any amount currently drawn?

The facility matures on January 2, 2029 and no balance was drawn at closing.

What are the interest rates and fees on LifeMD's (LFMD) new credit facility?

Interest is Term SOFR +150–225 bps or Alternate Base Rate +50–125 bps; unused-commitment fees range 0.225%–0.30%.

How does the leverage-based pricing affect LifeMD (LFMD) borrowing costs?

Pricing increases with higher company leverage, potentially raising interest expense if leverage rises.