By Chris Wack
Shares of Agrify Corp. fell 14% to $5.31 after the company announced it had entered into a debt financing agreement of up to $135 million in a senior secured credit facility with an institutional lender.
The company said the proceeds would be used for working capital and general corporate purposes.
Initial financing of $65 million under the note would be immediately available to the company upon an initial closing, with the option for the company to draw the remaining $70 million available in two subsequent financings of $35 million. dollars each, subject to the satisfaction of certain financing conditions.
The note will mature on March 1, 2026 and will contain an annualized coupon of 6.75% payable quarterly, in cash, beginning February 1, 2023.
At the time of the initial financing, the company will issue to the lender warrants with a term of 5.5 years, exercisable for a number of shares equal to 65% of the financing amount divided by the closing price of the trading day. . before the date of the final agreement. The initial warrants will have an exercise price equal to $6.75, or 110% of the closing share price on the trading day immediately preceding the signing of the definitive agreement.
Write to Chris Wack at [email protected]