AYR Locks In $50M Bridge Loan to Strengthen Restructuring Efforts

MIAMI – AYR Wellness Inc., a vertically integrated multistate Cannabis operator, has finalized a senior secured bridge credit agreement offering up to $50 million in funding to maintain operations and advance its restructuring plan. The deal, executed last week, comes as the company navigates financial pressures, including recent missed interest payments on its senior notes.

The agreement involves CSAC Holdings Inc., a subsidiary of AYR, as the borrower, with an ad hoc group of senior noteholders serving as lenders. Acquiom Agency Services LLC acts as the administrative and collateral agent, while other AYR subsidiaries provide guarantees.

Under the terms, the loan is structured as a multiple-draw facility with an interest rate of 14% per year, paid in kind and added to the principal each month. It includes premiums such as a 10% commitment fee, a 10% exit fee and a 15% backstop fee; all subject to lender-approved budgets. The facility matures in phases, with portions due as early as November or tied to the completion of asset sales. Lenders, an ad hoc group of the company’s senior noteholders, will provide the capital through a subsidiary borrower, secured by assets on par with existing notes.

The funding ties directly to a restructuring support agreement announced in late July, which sets out a plan to sell core operations in six states like Florida, Ohio, Nevada, New Jersey, Pennsylvania and Virginia to noteholders through a credit-bid process under Article 9 of the Uniform Commercial Code. Upon sale completion, the bridge loan converts to a new term facility for the acquiring entity, owned by the noteholders.

This step addresses AYR’s broader debt load of about $904 million, with $358 million due by 2026, following a $10 million interest miss in July that raised default risks. The company must now meet strict covenants, including a $17.5 million minimum liquidity test each week, adding pressure in a sector where operators often face tight cash flows without federal bankruptcy options and underscoring the high-stakes nature of creditor-backed rescues in Cannabis.

While the loan provides breathing room, its terms reflect the pressures of a market still hampered by federal restrictions and capital constraints. For AYR, the path ahead depends on executing the sale without hitches, which could influence how other firms handle similar debt loads in the coming months.