Dragonfly Energy executes term loan restructuring agreements

Dragonfly Energy (DFLI) Holdings has finalized its agreements to restructure its outstanding indebtedness with its lenders under its existing term loan agreement. The restructuring substantially improves Dragonfly Energy’s balance sheet by reducing outstanding debt and aligning capital resources to support continued execution of the Company’s growth strategy, including expansion of its proprietary battery manufacturing and technology initiatives. Key Terms of the Definitive Agreements: The Company has prepaid $45.0 million of outstanding principal of its senior secured term loan facility under the Term Loan Agreement using net proceeds from its recently completed stock offering. The Lenders have converted $25.0 million of outstanding principal of the Term Loan into shares of newly created preferred stock, convertible into common stock at a fixed price of $3.15 per share, and containing such other terms as previously disclosed by the Company. The Lenders have forgiven $5.0 million of outstanding principal of the Term Loan. The remaining $19.0 million in principal of the Term Loan carries a fixed interest rate of 12% per annum, payable monthly beginning December 31, 2025, and maturing in October 2027. Certain financial covenants under the Term Loan Agreement have been waived through December 31, 2026.