Dragonfly Energy Holdings Corp. has finalized agreements to restructure its outstanding debt. The company said the move reduces its corporate debt and increases financial flexibility.
Dragonfly CEO Dr. Denis Phares said the restructuring substantially improves the company’s balance sheet and aligns capital resources to support continued expansion.
“This restructuring with our term-loan lenders marks a very important corporate milestone in strengthening Dragonfly Energy’s capital structure and increasing our financial flexibility,” Phares said. “Along with our recently completed capital raises, we believe this transaction positions us to better execute on our potential growth opportunities and drive long-term shareholder value.”
Dragonfly prepaid $45 million of outstanding principal of its senior secured term loan facility agreement in the restructuring. The company used net proceeds from its recently completed stock offering to make the payment.
Dragonfly said its lenders converted $25 million of outstanding term loan principal into shares of newly created preferred stock. The shares are convertible into common stock at $3.15 per share.
Dragonfly’s lenders also forgave $5 million of outstanding principal. The remaining $19 million in principal carries a fixed annual interest rate of 12%, payable monthly beginning Dec. 31, and maturing in October 2027.
