Long-term Debt | 8. Long-Term Debt Long-term debt consisted of the following as of September 30, 2021 and December 31, 2020, respectively: September 30, 2021 (in thousands) Principal Unamortized debt Total debt, 2021 Term Loan $ 275,000 $ ( 2,737 ) $ 272,263 Less: current portion of long-term debt 6,875 Long-term debt $ 265,388 December 31, 2020 (in thousands) Principal Unamortized debt Total debt, 2019 Term Loan $ 444,375 $ ( 10,865 ) $ 433,510 Paid in kind interest on 2019 Term Loan 10,412 — 10,412 2019 Delayed Draw Term Loan 17,955 — 17,955 Total debt $ 472,742 $ ( 10,865 ) $ 461,877 Less: current portion of long-term debt 4,680 Long-term debt $ 457,197 On September 17, 2021, the Company repaid the outstanding principal balances of the 2019 Term Loan, as described below, of $ 442.1 million, paid in kind interest, as described below, of $ 10.4 million, 2019 Delayed Draw Term Loan, as described below, of $ 17.9 million and related accrued interest payable of $ 4.2 million totaling $ 474.6 million using the proceeds from the 2021 Term Loan, as described below, of $ 275.0 million and net proceeds of the IPO of $ 199.6 million, inclusive of accrued interest expense. The effective interest rate for these loans under the 2019 Credit Agreement, as described below, was 6.25 % as of the repayment date. The Company recognized a $ 9.9 million loss on the extinguishment of debt relating to the write off of unamortized debt issuance costs. 2021 Credit Agreement On September 17, 2021, Definitive Healthcare Holdings, LLC, a Delaware limited liability company ("DH Holdings"), an indirect subsidiary of Definitive Healthcare Corp., entered into a credit agreement (the "2021 Credit Agreement") with Bank of America, N.A., as administrative agent, the other lenders party thereto and the other parties specified therein. The 2021 Credit Agreement provides for (i) a $275.0 million term loan A facility (the "2021 Term Loan") and (ii) a $ 75.0 million revolving credit facility (the "2021 Revolving Line of Credit" and, together with the 2021 Term Loan, collectively, the "2021 Credit Facilities"), the proceeds of which were used to repay a portion of the indebtedness outstanding under the 2019 Credit Agreement (as described below). Both the 2021 Term Loan and the 2021 Revolving Line of Credit mature on September 17, 2026 . The 2021 Credit Facilities include customary affirmative, negative and financial covenants. The 2021 Credit Facilities are guaranteed by all of DH Holdings's wholly-owned domestic restricted subsidiaries and AIDH Buyer, LLC, a Delaware limited liability company and the direct parent company of DH Holdings, in each case, subject to customary exceptions, and are secured by a lien on substantially all of the assets of DH Holdings and the guarantors, including a pledge of the equity of DH Holdings, in each case, subject to customary exceptions. The 2021 Term Loan is subject to annual amortization of principal, payable in equal quarterly installments on the last day of each fiscal quarter, commencing on December 31, 2021 (the "Initial Amortization Date"), equal to approximately 2.5% per annum of the principal amount of the term loans in the first year and second year after the Initial Amortization Date and approximately 5.0% per annum of the principal amount of the term loans in the third year, fourth year and fifth year after the Initial Amortization Date. A balloon payment of approximately $ 220.0 million will be due at the maturity of the 2021 Term Loan. There was $ 275.0 mil lion outstanding on the 2021 Term Loan at September 30, 2021. DH Holdings is required to pay the lenders under the 2021 Credit Agreement an unused commitment fee of between 0.25 % and 0.30 % per annum on the undrawn commitments under the 2021 Revolving Line of Credit, depending on the total net leverage ratio, quarterly in arrears. The expense is included in interest expense in the statements of operations. There was no outstanding balance on the 2021 Revolving Line of Credit at September 30, 2021. For both the 2021 Term Loan and 2021 Revolving Line of Credit, DH Holdings may elect from several interest rate options based on the LIBO Rate or the Base Rate plus an applicable margin. The applicable margin will be based on the total leverage ratio beginning in the fiscal year ended December 31, 2022. As of September 30, 2021, the effective interest rate was 2.37 %. In connection with the 2021 Credit Agreement, the Company capitalized financing costs totaling $ 3.5 million, $ 2.8 million for the 2021 Term Loan facility and $ 0.8 million for the 2021 Revolving Line of Credit. The financing costs associated with the 2021 Term Loan facility are recorded as a contra-debt balance in Term loan, net of current portion in the condensed consolidated balance sheets and are amortized over the remaining life of the loan using the effective interest method. The financing costs associated with the 2021 Revolving Line of Credit are recorded in Other assets in the condensed consolidated balance sheet are are amortized over the life of the arrangement. 2019 Credit Agreement On July 16, 2019, DH Holdings entered into a credit agreement (the “2019 Credit Agreement”) by and among DH Holdings, the lenders party thereto and Owl Rock Capital Corporation, as administrative agent. Under the 2019 Credit Agreement, a $ 450.0 million term loan facility (the “2019 Term Loan”), a $ 100.0 million delayed draw term loan facility (the “2019 Delayed Draw Term Loan”) and a $ 25.0 million revolving line of credit (the “2019 Revolving Line of Credit”) were made available to DH Holdings. The 2019 Credit Agreement included customary affirmative, negative and financial covenants. All facilities under the 2019 Credit Agreement were guaranteed, by DH Holdings’s wholly-owned domestic restricted subsidiary, Definitive Healthcare LLC, a Massachusetts limited liability company and AIDH Buyer, LLC, a Delaware limited liability company and the direct parent company of DH Holdings, and were secured by a lien on substantially all of the assets of DH Holdings and the guarantors, including a pledge of the equity of DH Holdings, in each case, subject to customary exceptions. The 2019 Term Loan had a maturity date of July 16, 2026 and was issued with an original issue discount of $ 11.3 million and amortized to interest expense over the term of the agreement using the effective interest method. Interest on a portion of the loan ($ 100.0 million of the $ 450.0 million principal amount) was treated as paid in kind and added to the principal balance to be paid off at maturity. DH Holdings could elect from several interest rate options based on the Eurodollar Rate or the Base Rate plus an applicable margin. Quarterly principal payments of $ 1.1 million began in December 2019 and were required through the 2019 Term Loan's maturity, at which time a balloon payment of $ 419.6 million, excluding the paid in kind portion, was due. The paid in kind interest was payable on the maturity date. 2019 Term Loan was subject to excess cash flow payments annually beginning in the fiscal year ended December 31, 2020 based on the total leverage ratio. There was $ 454.8 million outstanding on the 2019 Term Loan at December 31, 2020, including $ 10.4 million of paid in kind interest. The effective interest rate for the 2019 Term Loan and paid in kind effective interest was 6.50 % at December 31, 2020. The 2019 Delayed Draw Term Loan had a maturity of July 16, 2026 . The 2019 Delayed Draw Term Loan was issued with an original issue discount of $ 1.3 million. DH Holdings could draw down funds under the 2019 Delayed Draw Term Loan until July 16, 2021. As of December 31, 2020, DH Holdings drew $ 18.0 million on the 2019 Delayed Draw Term Loan, in connection with the Monocl acquisition. DH Holdings could elect from several interest rate options based on the Eurodollar Rate or the Base Rate plus an applicable margin. Quarterly in arrears through July 16, 2021, DH Holdings was required to pay the bank a fee equal to 1 % per annum of the amount of the 2019 Delayed Draw Term Loan unused capacity. Quarterly principal payments began in December 2020 in quarterly installments equal to 0.25 % of the aggregate amount outstanding on the 2019 Delayed Draw Term Loan, and are required through the note’s maturity, at which time a payment of the entire outstanding principal balance will be due. The outstanding balance on the 2019 Delayed Draw Term Loan was $ 18.0 million at December 31, 2020. The effective interest rate for the 2019 Delayed Draw Term Loan was 6.50 % at December 31, 2020. The 2019 Revolving Line of Credit had a maturity of July 16, 2024 . DH Holdings could elect from several interest rate options based on the Eurodollar Rate or the Base Rate plus an applicable margin. During 2020, $ 25.0 million was drawn on the 2019 Revolving Line of Credit and subsequently paid back in 2020. There was no outstanding balance on the 2019 Revolving Line of Credit at December 31, 2020. No draws on the 2019 Revolving Line of Credit were made in 2021 and the 2019 Credit Agreement was terminated on September 17, 2021 . In connection with the 2019 Credit Agreement, the Company originally capitalized financing costs totaling $ 14.1 million, $ 13.4 million for the 2019 Term Loan and $ 0.7 million for the 2019 Revolving Line of Credit. In October 2020, the Company capitalized an additional $ 0.2 million in financing costs associated with the 2019 Delayed Draw Term Loan borrowing. These financing costs were recorded as deferred financing costs in the condensed consolidated balance sheets and amortized over the remaining lives of the respective borrowing using the effective interest method. The Company expensed capitalized financing costs for the 2019 Credit Agreement through interest expense of $ 0.4 million and $ 0.5 million for the three months ended September 30, 2021 and 2020, respectively, and $ 1.5 million for the nine months ended September 30, 2021 and 2020, respectively. At December 31, 2020, the unamortized financing costs for the 2019 Revolving Line of Credit of $ 0.5 million was classified in other assets in the consolidated balance sheet. |