AYRWF - Cannabis MSO Strikes Million-Dollar Debt Relief Deal More Details Here | Benzinga
Vertically integrated multi-state cannabis operator AYR Wellness Inc. (CSE: AYR.A) (OTCQX: AYRWF) has entered into a transaction support agreement with the holders of approximately 75% of the aggregate outstanding principal amount of the company's 12.5% senior notes due December 2024.
The move follows the company's announcement in June 2023 of its entry into contingent agreements to defer principal or amortization payments for two years on an aggregate principal amount of approximately $69 million of its debt obligations owed to sellers of businesses previously acquired by the company.
The Miami-based company announced on Wednesday that under the deal:
- The existing senior Notes will be transferred to a newly formed CBCA subsidiary of AYR.
- The holders of the senior notes will receive an equal principal amount of 13% of senior notes issued by Newco in an aggregate amount of $243 million.
- The majority noteholders will be offered the opportunity to participate in the issuance of an additional 13% senior notes in an aggregate principal amount of $50 million, subject to a 20% original issue discount and concurrent with the completion of the exchange transaction;
- The offering of an additional 13% senior notes will be backstopped by one of the majority noteholders, in exchange for which such backstop party will, on closing, receive a backstop premium payable in the form ...