Direct Digital Holdings Inc.
09/12/2025 | Press release | Distributed by Public on 09/12/2025 14:05
Material Agreement, Financial Obligation, Termination of Material Agreement (Form 8-K)
Item 1.01 Entry into Material Definitive Agreement.
On September 8, 2025, Direct Digital Holdings, LLC ("DDH LLC"), as borrower, entered into the Eighth Amendment (the "Eighth Amendment") to the Term Loan and Security Agreement dated December 3, 2021 (the "Term Loan Facility") with Direct Digital Holdings, Inc. (the "Company"), Colossus Media, LLC, Huddled Masses LLC and Orange142, LLC, as guarantors (such guarantors together with DDH LLC, the "Credit Parties"), and Lafayette Square Loan Servicing, LLC ("LS"), as administrative agent, and Lafayette Square USA, Inc. ("Lafayette") and the other lenders from time to time party thereto.
Under the terms of the Eighth Amendment, among other changes, DDH LLC requested and LS agreed to make a term loan in the principal amount equal to $3.8 million (the "Eighth Amendment Term Loan") which includes an interest reserve under the Eighth Amendment in an amount equal to $93,000. Additionally, LS and the Credit Parties agreed to use the proceeds of the Eighth Amendment Term Loan to repay in full and terminate the revolving credit notes under the Credit Agreement (the "Credit Agreement"), dated July 7, 2023, by and among East West Bank ("EWB"), as lender, and DDH LLC, the Company, Huddled Masses LLC, Colossus Media, LLC and Orange142, LLC, as borrowers. The Credit Parties also agreed to pay a $37,500 amendment fee no later than September 30, 2025. The maturity date of the Eighth Amendment Term Loan is October 30, 2025.
As of the effectiveness of the Eighth Amendment, term loans in an aggregate principal amount of $13.2 million remain outstanding under the Term Loan Facility. As previously disclosed, under the terms of the Seventh Amendment dated August 8, 2025 to the Term Loan Facility, the parties agreed to convert and exchange term loans with an aggregate principal amount of $25.0 million for newly authorized shares of Series A Preferred Stock, par value $0.001, of the Company with an aggregate face amount of $25.0 million issued to Lafayette.
The foregoing description of the Eighth Amendment is not complete and is qualified in its entirety by the full text of the Eighth Amendment, a copy of which is filed herewith as Exhibit 10.1 and incorporated herein by reference.
Item 1.02 Termination of a Material Definitive Agreement.
On September 8, 2025, the Credit Parties used the proceeds of the Eighth Amendment Term Loan to repay in full the outstanding loans, fees and other obligations under the Credit Agreement and to terminate the Credit Agreement and release the liens in favor of EWB under the Credit Agreement. The Credit Agreement provided for a revolving credit facility in the principal amount of up to $5.0 million, subject to a borrowing base determined based on eligible accounts. At the time of termination, the $5.0 million principal amount revolving credit facility under the Credit Agreement was not open for advances.
The Credit Parties did not incur any termination penalties as a result of the repayment and termination of the Credit Agreement.
Item 2.03 Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet
Arrangement of a Registrant
The disclosures set forth in Item 1.01 of this Current Report on Form 8-K are incorporated by reference herein.
Direct Digital Holdings Inc. published this content on September 12, 2025, and is solely responsible for the information contained herein. Distributed via SEC EDGAR on September 12, 2025 at 20:05 UTC. If you believe the information included in the content is inaccurate or outdated and requires editing or removal, please contact us at [email protected]