LifeMD secures $50 million credit facility with Citizens Bank

LifeMD, Inc. (NASDAQ: LFMD) closed a $50 million senior secured revolving credit facility with Citizens Bank, N.A., the virtual healthcare provider announced January 6.

The facility matures January 2, 2029, and provides $30 million of committed availability with an additional accordion option of up to $20 million. The company has not drawn any balance on the facility at closing, stating its current cash and expected cash flow are sufficient for organic growth initiatives.

Interest rates on loans under the facility are based on either Term SOFR plus 150 to 225 basis points or the Alternate Base Rate plus 50 to 125 basis points, depending on company leverage. Fees on the unused portion range from 0.225% to 0.30%. The facility includes no upfront fee.

"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," said Marc Benathen, Chief Financial Officer of LifeMD.

LifeMD provides virtual primary care and pharmacy services, offering telemedicine and specialized treatment across more than 200 conditions. The company operates through a vertically integrated digital care platform, a 50-state affiliated medical group, and an affiliated compounding pharmacy.

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