Dragonfly Energy Holdings Corp. has entered into an amendment to its senior secured term loan and a limited waiver with its Series B preferred stockholders. These agreements, effective September 30, 2026, provide the company with a waiver for its minimum liquidity covenant for September and allow for the deferral of a significant portion of its Series B preferred stock cash dividend.
Key Details
- Term Loan Amendment: Lenders agreed to waive the minimum liquidity covenant test for the month ending September 30, 2026. In exchange, Dragonfly will pay a $450,000 amendment fee, which will be paid-in-kind by being added to the outstanding loan principal.
- Dividend Payment Deferral: Holders of Series B Preferred Stock waived their right to receive the full cash dividend on October 1, 2026, for the quarter ending September 30, 2026.
- Modified Payment Schedule: The company will now pay the cash dividend in two parts: 2% per annum by October 1, 2026, and the remaining 6% per annum by October 30, 2026. The 2% payment-in-kind (PIK) dividend portion is unaffected.