Reed's, Inc. entered into an amendment to its Senior Secured Loan and Security Agreement on September 30, 2026. The amendment, dated September 30, 2026, was executed with funds affiliated with Whitebox Advisors, LLC and Cantor Fitzgerald Securities, acting as administrative and collateral agent.
Under the terms of the amendment, the company terminated its existing Revolving Credit Commitments and converted them into a new tranche of term loans with an aggregate principal amount of $9,250,000. These term loans are non-reborrowable once repaid. The interest rate on these loans is set at 8.75% per annum, with monthly payments due in arrears on the last business day of each month.
The maturity date for the term loans has been extended to June 30, 2027. The company has the option to extend this maturity by an additional three months to September 30, 2027. If the extension is exercised, the interest rate will increase to 9.25% per annum during that period. The company must provide written notice of the extension by March 31, 2027, and must reduce the outstanding term loans to no more than $8,400,000 prior to June 30, 2027, without any defaults occurring.
Other changes to the agreement include the elimination of the revolving loan unused fee and the modification of certain mandatory prepayment provisions. Additionally, a liquidity covenant regarding inventory plus accounts receivable was waived through November 6, 2026.
As a new condition, the company is required to receive aggregate cash equity contributions of at least $10,000,000 on or after the effective date of the amendment, but no later than November 6, 2026.
