Synergy CHC Announces $20 Million Strategic Credit Facility
Synergy CHC Corp. (NASDAQ: SNYR), a renowned leader in consumer health care and lifestyle products, recently revealed an exciting development for its future. The company has successfully entered into a substantial $20 million term loan credit agreement designed to bolster its growth initiatives.
Details of the Loan Agreement
The credit facility, negotiated with ACP Agency, LLC, has a maturity date set for May 2029. A significant aspect of the deal is the brand-new $15 million term loan that Synergy has received upfront, with an interest rate pegged at SOFR plus 8.5%. This agreement stands out as it offers an interest-only phase through 2025, introducing quarterly principal repayments starting at $175,000 in January 2026. As Synergy progresses, this amount will increase to $350,000 per quarter in 2027 and thereafter.
Flexibility and Stability in Financial Growth
In addition to the initial term loan, the credit facility also gives Synergy access to a $2.5 million delayed draw facility and an uncommitted term loan incremental facility for an additional $2.5 million. These options provide Synergy with the flexibility to manage its finances effectively and strategically focus on growth opportunities.
CEO Statement on Debt Refinancing
CEO Jack Ross expressed optimism about the new credit agreement, stating, “We are very pleased to have completed our debt refinancing, which supports our growth strategy and significantly strengthens our capital structure.” He highlighted how the long-term nature of this facility enhances their balance sheet and allows for necessary flexibility during this critical phase of growth. Additionally, the availability of delayed draw proceeds will enable the company to pay off debt tied to settlement agreements, thereby promoting greater financial stability in alignment with its strategic goals.
About Synergy CHC Corp.
Synergy CHC Corp. is not just another player in the consumer health market; it is known for its innovative approach and strong product offerings. The company’s portfolio comprises notable brands, including FOCUSfactor, a clinically-tested brain health supplement known for its ability to improve memory, concentration, and focus. Another standout is Flat Tummy, which is dedicated to providing nutritional products that help women meet their weight management ambitions. Together, these brands showcase Synergy’s commitment to improving consumer health and wellbeing.
Investor Relations
For inquiries related to investors, interested parties can reach out to the investor relations team at Gateway Group. Key contacts include Cody Slach and Greg Robles, available at 949.574.3860. Direct email communications can be made through SNYR@gateway-grp.com.
Frequently Asked Questions
What is the purpose of the $20 million credit facility?
The $20 million credit facility is primarily aimed at paying down debt and providing Synergy CHC with the necessary growth capital to fuel future operations.
Who is the credit facility agreement with?
The credit facility has been secured through ACP Agency, LLC, establishing a long-term partnership beneficial for both entities.
What are the terms of the loan?
The loan involves a $15 million term loan with an interest rate tied to SOFR plus 8.5%, with interest-only payments until 2025 and principal payments beginning in 2026.
How does this facility enhance Synergy's financial position?
This facility strengthens Synergy’s capital structure, allowing for improved flexibility, stability, and the ability to repay debts related to settlement agreements.
What brands does Synergy CHC offer?
Synergy CHC offers various consumer health and lifestyle products, including its leading brands FOCUSfactor and Flat Tummy.
