Hydrofarm agrees to retire $109 million secured term loan for preferred stock and warrants
HYFM•Hydrofarm agreed to extinguish its $109 million secured term loan by issuing 27.5 million preferred shares and warrants to buy 27.5 million common shares at $0.78 each. A concurrent offering priced at $0.905 is expected to raise about $8.3 million gross, with closing expected October 27, 2026.
1. Debt conversion terms
Hydrofarm agreed to extinguish its $109 million Senior Secured Term Loan by issuing lenders 27.5 million Series 1 Non-Voting Convertible Preferred Stock shares. Lenders will also receive warrants to purchase 27.5 million common shares at $0.78 per share. Each preferred share converts into one common share, and conversion and warrant exercise require shareholder approval.
2. Concurrent offering
A registered direct offering and private placement priced at $0.905 are expected to raise approximately $8.3 million in gross proceeds. The offering is expected to close October 27, 2026, subject to customary conditions, and net proceeds are earmarked for general corporate purposes.
