AYR Wellness Executes Senior Secured Bridge Credit Agreement

Core Points - AYR Wellness Inc. has executed a definitive senior secured bridge term loan agreement providing up to US$50 million in funding to support ongoing operations and facilitate a restructuring plan [1][3] - The Bridge Credit Agreement involves multiple draws and is secured by all present and future acquired assets of the Borrower and Guarantors, ranking pari passu with existing senior secured notes [5][6] - The loans under the Bridge Facility bear an interest rate of 14.0% per annum, with specific maturity dates for Tranche A and Tranche B loans [6][10] Financial Structure - The Bridge Facility consists of Initial Term Loans (Tranche A and Tranche B) and Delayed Draw Term Loans, with proceeds allocated for working capital, corporate purposes, and restructuring costs [4][3] - A commitment premium, exit premium, and backstop premium are included in the Bridge Facility, all payable in kind and potentially convertible to equity [7] Covenants and Conditions - The Bridge Credit Agreement includes affirmative and negative covenants, such as maintaining cannabis licenses and restrictions on additional indebtedness, with a minimum liquidity covenant of US$17.5 million [8] - Events of default include payment defaults, covenant breaches, and failure to meet restructuring milestones [9] Company Overview - AYR Wellness is a vertically integrated U.S. multi-state cannabis operator with over 90 licensed retail locations across several states, offering a broad portfolio of cannabis products [12]