AYR Wellness, together with its affiliates and subsidiaries, a vertically integrated U.S. multi-state cannabis operator, executed a definitive senior secured bridge term loan agreement, which will provide the company with up to $50 million of committed funding to support ongoing operations and to facilitate the orderly transition of its core business in accordance with the previously-announced restructuring support agreement dated July 30, 2025.
The bridge credit agreement was entered into among CSAC, an indirect wholly-owned subsidiary of AYR, the lenders party thereto, Acquiom Agency Services as administrative agent and collateral agent, and certain AYR subsidiaries as guarantors.
“Execution of the bridge credit agreement is the latest milestone in our ongoing restructuring effort and a pivotal step in securing the funding needed to advance our restructuring plan, safeguard operations, and preserve the value of our core assets for the benefit of our stakeholders,” Scott Davido, interim CEO of AYR, said. “We appreciate the continued support of our noteholders and look forward to closing the sale transaction contemplated by the RSA.”
The bridge credit agreement provides for a multiple-draw senior secured term loan facility in an aggregate principal amount of up to $50 million. The bridge facility is comprised of initial term loans (tranche A and tranche B) and delayed draw term loans (tranche A). The bridge facility is guaranteed by AYR Wellness and all direct and indirect subsidiaries of the borrower.
Ayr will use proceeds of the tranche A loan to fund working capital and general corporate purposes in accordance with a 13-week cash-flow budget approved in writing by lenders holding at least a majority of the aggregate commitments under the bridge facility, as well as to pay expenses of the sale transaction and related restructuring costs. Proceeds of the Tranche B loans will fund a court-supervised wind-down of the company’s non-core assets, subject to a wind-down budget that is similarly required to be approved in writing by the required lenders.
The bridge facility is secured by all present and future acquired assets of the borrower and guarantors.
