AYR Wellness Defers $69M Of Promissory Note Payments

AYR Wellness Inc. AYRWF AYR has now reached contingent agreements to defer principal or amortization payments for 2 years on an aggregate principal amount of approximately $69 million of debt obligations, including contingent agreements with holders of approximately $60.5 million aggregate principal amount of vendor take-back promissory notes, representing 67.4% of the outstanding principal amount of all vendor notes maturing before 2027. The company has also reached contingent agreements to defer the maturities of $4.5 million of other promissory notes, as well as a $4 million amortization payment due in December 2023.

Included in the $69 million total amount of deferred principal and amortization payments are the amendments to $27.7 million principal amount of vendor notes entered into upon completion of the company's acquisition of GSD and CannTech as well as promissory notes assumed by CSAC Acquisition PA Corp. in connection with the CannTech acquisition. As a result of the collective amendments to the vendor notes, promissory notes, and earn-out payments, the company has now successfully extended the payment terms of a cumulative of $96.9 million of obligations.

In connection with the above vendor note and promissory note amendments, the company has agreed to interest rate adjustments that will result in a blended interest rate increase of approximately 0.5% across the $69 million aggregate principal amount. The company also agreed to pay amendment fees with respect to certain of the above amendments aggregating $400,000 that will be capitalized to the principal amount of certain vendor notes. The effectiveness of the maturity and amortization deferrals referenced above is contingent on an amendment to the company’s 12.5% senior notes to extend the maturity date of the senior notes to December 10, 2026 or a later date.

Photo: Benzinga edit with photo by Kindel Media on Pexels

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Comments

Cannabis rescheduling seems to be right around the corner