Performant amends agreement, extends date for application of funds

By Tali Rackner

Norfolk, Va., March 28 – Performant Business Services, Inc., a wholly owned subsidiary of Performant Financial Corp., entered into a seventh amendment to its credit agreement with agent Madison Capital Funding LLC, according to an 8-K filing with the Securities and Exchange Commission.

Pursuant to the fourth amendment dated Feb. 19, 2016, Performant Financial deposited $7.5 million into a deposit account that is subject to the exclusive control of Madison Capital.

Under the seventh amendment, entered into on March 22, the date on which the funds will be sent to Madison Capital for application to the term loans or other obligations under the credit agreement was extended by about 2.5 months, to May 15 (or a later date not more than 30 days thereafter).

However, the filing said, all or some of the funds may be returned to Performant Financial if the agent and the requisite lenders under the credit agreement elect otherwise in their sole discretion. The funds may also be remitted to the agent in accordance with the foregoing sentence before May 15 if an event of default occurs and is continuing under the credit agreement.

The Livermore, Calif., company provides technology enabled services to help identify and recover delinquent or defaulted assets and improper payments.

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