RYTHM, Inc. (RYM): debt financing — Agrify signs debt modification: principal cut to ~$11.7M, interest savings ~$1M/yr

RYTHM, Inc.

Outstanding debt reduced from ~$32M to ~$11.675M after $10.3M cash prepayment and $10M exchange for convertible note.
Convertible note matures Aug 2025, bears 9.0% interest, convertible at $0.3820/share; lender capped at 4.99% ownership (may increase to 9.99%).
Working capital and restricted cash covenants eliminated; $3M mandatory prepayment of August 2022 Note required by Dec 31, 2023.
Annual interest expense expected to decrease by approximately $1 million.
Lender may convert additional $10M of remaining August 2022 Note into convertible note on Aug 19, 2023, subject to conditions.

item 1.01 item 2.03 item 3.02 item 8.01 item 9.01

Key facts

Extracted from this filing and checked against the source text.

Debt Financings SEC 8-K Item 2.03/2.04 confidence 0.7

RYTHM, Inc. amended senior notes of Prepayment of approximately $10.3 million and exchange of $10.0 million for Convertible Note with Lender at Not specified maturing Not specified.

Instrument: senior notes
Principal: Prepayment of approximately $10.3 million and exchange of $10.0 million for Convertible Note
Counterparty: Lender
Rate: Not specified
Maturity: Not specified
Event: amendment

Exact text from the filing

into a new Securities Exchange Agreement (the “ Exchange Agreement ”) with the Lender. Pursuant to the Exchange Agreement, at closing the Company will prepay approximately $10.3 million in principal amount under the August 2022 Note and exchange $10.0 in principal amount of the remaining balance of the August 2022 Note for a new senior secured convertible note

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Material Agreements SEC 8-K Item 1.01/1.02 confidence 0.95

RYTHM, Inc. entered into Securities Exchange Agreement with Lender valued at Prepayment of approximately $10.3 million principal under the August 2022 Note and exchange of $10.0 (effective 2023-03-08).

Action: entry
Counterparty: Lender
Value: Prepayment of approximately $10.3 million principal under the August 2022 Note and exchange of $10.0
Effective: 2023-03-08

Exact text from the filing

On March 8, 2023, the Company entered into a new Securities Exchange Agreement (the “ Exchange Agreement ”) with the Lender.

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Material Agreements SEC 8-K Item 1.01/1.02 confidence 0.95

RYTHM, Inc. amended Note Amendment with Lender valued at Amendment to the August 2022 Note to remove covenants. (effective 2023-03-08).

Action: amendment
Agreement: credit facility
Counterparty: Lender
Value: Amendment to the August 2022 Note to remove covenants.
Effective: 2023-03-08

Exact text from the filing

Note Amendment Concurrently with the closing under the Exchange Agreement, the Company and the Lender will enter into an Amendment to the August 2022 Note (the “ Note Amendment ”).

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RYTHM, Inc. filing history →

Source: SEC EDGAR

accession 0001213900-23-018686

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