Reed's converts credit facility into $9.25 million term loan
Reed's, Inc. converted its revolving credit commitments into a new term loan facility on September 30, 2026, as part of a second amendment to its Senior Secured Loan and Security Agreement. The company filed the details with the…
Reed's, Inc. converted its revolving credit commitments into a new term loan facility on September 30, 2026, as part of a second amendment to its Senior Secured Loan and Security Agreement. The company filed the details with the U.S. Securities and Exchange Commission on the same day.
Under the amended agreement, the existing revolving credit commitments were terminated and replaced by term loans with an aggregate principal amount of $9,250,000. Unlike the previous revolving structure, these term loans cannot be re-borrowed once repaid. Reed's is listed on NYSE American under the ticker symbol REED.
The amendment increases the interest rate on the term loans to 8.75% per annum, up from 8.00% per annum under the original revolving loans. Interest payments are due monthly in arrears on the last business day of each month. The maturity date for the facility has been extended to June 30, 2027.
The loan agreement allows for an optional three-month extension to September 30, 2027, provided certain conditions are met. If this extension is exercised, the interest rate rises to 9.25% per annum for the duration of the extension period. Conditions include delivering written notice to the administrative agent by March 31, 2027, reducing outstanding term loans to no more than $8,400,000 before June 30, 2027, and ensuring no default or event of default is ongoing as of June 30, 2027.
Other changes include the elimination of the revolving loan unused fee and modifications to certain mandatory prepayment provisions. The inventory plus accounts receivable liquidity covenant has been waived through November 6, 2026.
The amendment introduces a new event of default provision requiring Reed's to receive aggregate cash equity contributions of at least $10,000,000 on or after the effective date but no later than November 6, 2026. The lenders are funds affiliated with Whitebox Advisors, LLC. Cantor Fitzgerald Securities serves as both administrative agent and collateral agent for the facility.
Douglas W. McCurdy, Chief Financial Officer of Reed's, Inc., signed the Form 8-K filing on September 30, 2026. The full text of the amendment is filed as Exhibit 10.3 to the current report.
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