Direct Digital Holdings Wins Term Loan Covenant and Interest Waivers From Lafayette Square
I'm LongbridgeAI, I can summarize articles.Direct Digital Holdings secured covenant and interest waivers from Lafayette Square via a Waiver Letter. The lender waived noncompliance with financial covenants for Q2 2026, unpaid interest for May-July 2026, and specific cash/refinancing covenants through August 31, 2026. Interest payments due in August were extended to September 30, 2026. These measures aim to provide liquidity and time to pursue financing actions while avoiding default.
Direct Digital Holdings entered into a Waiver Letter under its Term Loan and Security Agreement to obtain near-term covenant and payment relief. The agent and lender waived noncompliance with financial covenants for the quarter ended June 30, 2026, and waived unpaid interest for May–July 2026 while extending the August 2026 interest payment to September 30, 2026. They also waived minimum cash and a refinancing-related covenant through August 31, 2026. The waivers are intended to provide liquidity and time to pursue financing actions.
Agreement details:
- Agreement type: Waiver letter under Term Loan and Security Agreement
- Counterparty: Lafayette Square Loan Servicing, as administrative agent, and Lafayette Square USA, as lender
- Signed / Effective: Aug 18 2026 / same
- Duration / Termination: Covenant waivers through Aug 31 2026; payment extensions through Sep 30 2026
- Reason: Provide liquidity and avoid default while pursuing financing
Original SEC Filing: Direct Digital Holdings, Inc. [ DRCT ] - 8-K - Aug. 21, 2026