Hydrofarm Secures Forbearance on $125M Term Loan After Default, FEAC Replaces JPMorgan as Agent
HYFM is trading near its 52-week low of $0.789 (3.5% above the low).
Summary
Hydrofarm Holdings Group has secured a forbearance agreement with its lenders on its $125 million senior secured term loan, effective April 8, 2026, through April 30, 2026. This action follows the company's default on a January 2026 interest payment, which was previously disclosed as an "event of default" in its recent 10-K. The forbearance, which is subject to strict conditions including a $1 million minimum liquidity covenant and reporting milestones, provides a temporary reprieve from immediate enforcement actions. Concurrently, FEAC has replaced JPMorgan as the administrative agent, and new liquidity and reporting covenants have been added to the credit agreement. This development is critical for the company, which has a market capitalization significantly smaller than the loan amount and recently received a Nasdaq non-compliance notice, as it attempts to stabilize its near-term liquidity and explore strategic options.
At the time of this announcement, HYFM was trading at $0.82 on NASDAQ in the Trade & Services sector, with a market capitalization of approximately $4.2M. The 52-week trading range was $0.79 to $4.78. This news item was assessed with neutral market sentiment and an importance score of 9 out of 10. Source: Wiseek News.