Hydrofarm Eliminates $109M Term Loan After Recapitalization

Hydrofarm Holdings Group, Inc. ("Hydrofarm" or the "Company") (NASDAQ:HYFM), a leading independent manufacturer and distributor of branded supplies and equipment for controlled environment agriculture ("CEA"), today provides additional detail on its debt elimination(i).

Prior to these actions, the Company had a $109 million Term Loan, with approximately $12 million of annual debt service. In the recapitalization, the Term Loan was eliminated, and the former Term Loan Lenders received $27.5 million of a newly created class of Series 1 Non-Voting Convertible Preferred Stock, convertible to common stock at $1.00 per share, and warrants to purchase 27.5 million shares of common stock at an exercise price of $0.78 per share. In addition, Hydrofarm sold common stock and warrants to investors in a registered direct offering and concurrent private placement (the "Offering"), raising approximately $8.3 million in gross proceeds. Officers and directors of the Company participated in the Offering on the same terms as other investors. Following the Offering and conversion of the Preferred Stock, the Company will have approximately 41.8 million common shares outstanding.