ITEM 2.03 Creation of a Direct Financial Obligation or an Obligation under an
Off-Balance Sheet Arrangement of a Registrant.
On July 2, 2009, Medifast, Inc., a Delaware corporation, established a $5
million unsecured line of credit with Bank of America. Borrowings under the line
of credit facility will bear interest at LIBOR + 175 basis points and credit is
available for a period of one year. The line of credit may be used for general
working capital requirements and for general corporate needs of Medifast, Inc.
On July 2, 2009, Medifast, Inc. also received a 3 year unsecured term loan with
a 5 year amortization from Bank of America to repay the $2.7 million balance on
its Merrill Lynch line of credit that expired on July 1, 2009. The interest rate
is at LIBOR + 200 basis points.
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