HYFM · Hydrofarm Holdings Group, Inc.

This filing discloses a material deterioration in Hydrofarm’s credit position: the Company defaulted on a $5.21 million interest payment due January 31, 2026, under its $125 million senior secured Term Loan, triggering an Event of Default under Section 8.1(a)(ii) of the Credit Agreement. In response, the Company secured a time-limited Forbearance Agreement effective April 8, 2026, with a hard expiration date of April 30, 2026 — extendable only at the sole discretion of the Administrative Agent in discrete 15-day increments. Critically, the forbearance is narrowly tailored: it covers only the Specified Event of Default and an anticipated going-concern qualified audit report (the 'Anticipated Event of Default'), and terminates immediately upon any other breach — including failure to meet the $1 million minimum daily cash balance requirement or non-compliance with budgeting, reporting, or asset-sale milestones. The concurrent Amendment No. 2 formalizes FEAC’s replacement of JPMorgan as Administrative and Collateral Agent and embeds enhanced monitoring covenants — liquidity reporting, inventory aging, and mandatory budget approval — signaling lender loss of confidence in prior governance. With $114.4 million in outstanding principal and over $5.2 million in accrued interest accruing at the default rate since February 6, 2026, the Company faces acute near-term liquidity pressure and heightened risk of acceleration absent resolution before the Forbearance Outside Date or a successful restructuring process. The absence of any equity infusion, refinancing terms, or strategic alternatives disclosed further underscores the severity of the situation.