Reed's, Inc. Amends Loan — Revolver Converted to $9.25M Term Loan

What Happened Reed's, Inc. (REED) announced on September 30, 2026 that it entered into Amendment No. 2 to its Senior Secured Loan and Security Agreement with Whitebox-affiliated funds (lenders) and Cantor Fitzgerald (administrative and collateral agent). The amendment converts the company’s existing revolving credit commitments into a new tranche of term loans totaling $9,250,000, extends the maturity date to June 30, 2027 (with an optional three‑month extension to September 30, 2027), and increases the interest rate on the Term Loans.

Key Details

• New Term Loans: $9,250,000 principal; converted from prior revolving commitments and cannot be re-borrowed once repaid.
• Interest: 8.75% per year (up from 8.00% on the original revolver); interest payable monthly in arrears on the last business day of each month.
• Maturity/Extension: Maturity date moved to June 30, 2027; optional extension to September 30, 2027 with a higher 9.25% rate during the extension if specified conditions are met (including notice by March 31, 2027 and reducing outstanding Term Loans to ≤ $8.4M by June 30, 2027).
• New covenant and waivers: inventory + accounts receivable liquidity covenant waived through November 6, 2026; the revolving loan unused fee eliminated; certain mandatory prepayment terms deleted or modified.
• New Event of Default: the company must receive at least $10,000,000 in aggregate cash equity contributions on or after the amendment effective date but no later than November 6, 2026; failure to meet this is an Event of Default.
• Other terms: Except as amended, material terms of the original loan agreement remain in effect; the amendment is filed as Exhibit 10.1 to the 8-K.

Why It Matters This amendment creates a new direct financial obligation of $9.25M and reduces Reed’s borrowing flexibility by converting a revolver into a term loan that cannot be re-borrowed. The company faces higher interest costs (8.75%) and a relatively near-term maturity (June 30, 2027) with a strict requirement to secure $10M in cash equity by November 6, 2026 to avoid an Event of Default. For investors, the changes affect Reed’s liquidity profile and near-term refinancing or capital-raising needs; the full amendment is available in the 8-K exhibits for further review.