The Honest Company Inc. (NASDAQ: HNST) entered into amendments to its credit agreement and security agreement on March 31, 2026, extending the maturity date and modifying terms of its revolving credit facility.

The amended credit agreement provides a revolving credit facility of up to $35 million, with a subfacility for letters of credit up to $15 million. The company has $1.5 million in existing letters of credit outstanding as of March 31, 2026, and has not borrowed under the facility.

The facility includes an uncommitted accordion feature allowing increases in the commitment amount by up to an additional $35 million, bringing potential revolving commitments to $70 million total.

Interest rates will be based on either the Adjusted Term SOFR Rate plus a margin of 1.75% to 2.25%, or the CB floating rate with margins ranging from minus 0.25% to plus 0.25%. The CB floating rate is defined as the higher of the Wall Street Journal prime rate and 2.50%. Margins are determined by the company's leverage ratio.

The credit facility will terminate on March 31, 2029. Debt under the facility will be guaranteed by substantially all of the company's material domestic subsidiaries and secured by substantially all assets of the company and subsidiaries.

The agreement includes financial covenants related to minimum total fixed charge coverage ratio and maximum total leverage ratio, calculated on a trailing four fiscal quarter basis. The facility also contains restrictions on asset sales, investments, acquisitions, indebtedness, liens, dividend payments and other activities, subject to customary exceptions.

JPMorgan Chase Bank serves as administrative agent for the lenders under the amended agreement.