Option Care Health, Inc. 10-K

Item 7A. Quantitative and Qualitative Disclosures about Market Risk Interest Rate Risk The Company’s primary market risk exposure is to changing SOFR‑based interest rates. Interest rate risk is highly sensitive due to many factors, including U.S. monetary and tax policies, U.S. and international economic factors and other factors beyond our control. At December 31, 2025, we had outstanding debt of $676.3 million under our First Lien Term Loan with a variable interest rate component. See Note 11, Indebtedness , of the consolidated financial statements for more information. To reduce interest rate risk, the Company has utilized an interest rate derivative contract to hedge against fluctuations in SOFR rates on the First Lien Term Loan. In conjunction with the October 2021 debt refinancing, the Company entered into an interest rate cap hedge with a notional amount of $300.0 million for a five-year term, effective on November 30, 2021. See Note 12, Derivative Instruments , of the consolidated financial statements for more information. A hypothetical 100-basis point increase or decrease in market interest rates associated with the unhedged variable-rate debt over a 12-month period would result in a change to interest expense of approximately $3.8 million. 39 Table of Contents