Hydrofarm eliminates $109 million in debt through recapitalization
HYFM•Hydrofarm eliminated its $109 million term loan through a recapitalization and said it is debt-free. Former lenders received $27.5 million in convertible preferred stock and warrants for 27.5 million shares, while an offering raised about $8.3 million in gross proceeds.
1. Debt recapitalization
Hydrofarm eliminated its $109 million term loan through a recapitalization, becoming debt-free. Former lenders received $27.5 million of Series 1 non-voting convertible preferred stock, convertible into common shares at $1 each, and warrants to buy 27.5 million common shares at $0.78 per share.
2. Offering and share count
A registered direct offering with a concurrent private placement raised approximately $8.3 million in gross proceeds. Hydrofarm said approximately 41.8 million common shares will be outstanding following the offering and conversion of the preferred stock.
