Marijuana MSO Ayr Wellness to defer paying $69 million in debt obligations

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Multistate marijuana company Ayr Wellness has reached agreements to defer by two years principal or amortization payments on debt obligations worth roughly $69 million.

To achieve those deferrals, Ayr is amending agreements regarding vendor notes and promissory notes related to a series of acquisitions.

Including previously announced amendments to “vendor notes, promissory notes and earnout payments, the company has now successfully extended the payment terms of a cumulative of $96.9 million of obligations,” the Miami-based company said in a Monday news release.

The latest amendments were made to debt agreements related to:

  • Ayr’s acquisition of Pennsylvania medical cannabis dispensary operator PA Naturals.
  • Its purchase of New Jersey medical marijuana company GSD NJ.
  • Its acquisition of Pennsylvania cannabis company CannTech PA.
  • “Promissory notes assumed by certain subsidiaries of (Ayr) in connection with the GSD and CannTech acquisitions in favor of former minority interest holders.”
  • Ayr’s purchase of Illinois-based Herbal Remedies Dispensaries.
  • Its acquisition of Pennsylvania cultivator and processor DocHouse.

In connection to the amendments, Ayr said it had “agreed to interest rate adjustments that will result in a blended interest rate increase of approximately 0.5% across the $69 million aggregate principal amount.”

The company is also paying amendment fees worth $400,000.

Ayr noted in its release that “the effectiveness of the maturity and amortization deferrals referenced above is contingent on an amendment to the company’s 12.5% senior notes to extend the maturity date of the senior notes to December 10, 2026 or a later date,” or an exchange of those notes for new notes.

In January, Ayr canceled its plan to acquire Chicago cannabis retail operator Dispensary 33.

In February, Ayr announced layoffs affecting 180 employees and also sold assets in Arizona while announcing plans to acquire assets in Ohio.

Ayr currently operates in eight states.