AYR Wellness nears completion of debt restructuring plan

The extension deal will dilute the company's existing share structure.

U.S. multistate operator AYR Wellness Inc. (OTCQX: AYRWF) announced it is close to finalizing a debt restructuring deal that includes its Canadian subsidiary, AYR Wellness Canada.

The Miami-based company is part of a plan of arrangement under Section 192 of the Canada Business Corporations Act.

The company will exchange its existing senior secured notes, which are due in December 2024 with a 12.50% interest rate, for new 13% senior secured notes due in December 2026. The new notes, with a principal amount of $243.5 million, will be managed by AYR Wellness Canada.

In addition, AYR Wellness will issue new subordinate voting shares and antidilutive warrants to holders of the new debt.

The deal will dilute the company’s existing share structure, but the move is a necessary step to balance immediate financial needs with long-term shareholder value, according to a statement from the company.

Additionally, AYR Wellness Canada will issue $50 million in additional senior secured notes, due in 2026. The completion of the restructure is targeted for Feb. 7, 2024.

Adam Jackson

Adam Jackson writes about the cannabis industry for the Green Market Report. He previously covered the Missouri Statehouse for the Columbia Missourian and has written for the Missouri Independent. He most recently covered retail, restaurants and other consumer companies for Bloomberg Business News. You can find him on Twitter at @adam_sjackson and email him at adam.jackson@crain.com.


Leave a Reply

Your email address will not be published. Required fields are marked *

Get the latest cannabis news delivered right to your inbox

The Morning Rise

Unpack the industry with the daily cannabis newsletter for business leaders.

 Sign up


About Us

The Green Market Report focuses on the financial news of the rapidly growing cannabis industry. Our target approach filters out the daily noise and does a deep dive into the financial, business and economic side of the cannabis industry. Our team is cultivating the industry’s critical news into one source and providing open source insights and data analysis


READ MORE



Recent Tweets

Get the latest cannabis news delivered right to your inbox

The Morning Rise

Unpack the industry with the daily cannabis newsletter for business leaders.