HYDROFARM HOLDINGS GROUP, INC. 8-K

What Happened

• HydroFarm Holdings Group, Inc. filed an 8-K on February 20, 2026 disclosing two material financing developments. The company entered a Termination Agreement to end its Revolving Credit Agreement dated March 29, 2021 (agent: JPMorgan Chase Bank, N.A.).
• Separately, HydroFarm elected to defer an interest payment of approximately $2.8 million on its senior secured term loans (initial principal $125 million, issued under the Credit and Guaranty Agreement dated October 25, 2021). The missed payment on February 4, 2026 resulted in an event of default; lenders notified the company on February 11, 2026 that they may exercise contractual remedies but had not done so as of that notice. The company is engaged in ongoing discussions with the lenders and is exploring strategic alternatives to strengthen liquidity and capital structure.

Key Details

• Revolving Credit Agreement terminated pursuant to a Termination Agreement; certain contractual provisions survive termination per Section 9.05. Agent for the revolver was JPMorgan Chase Bank, N.A.
• Term loan original principal: $125 million (Credit and Guaranty Agreement dated Oct 25, 2021).
• Missed interest payment: ~ $2.8 million, payment deferred on Feb 4, 2026; event of default notice received Feb 11, 2026.
• Lenders notified the company they may enforce remedies under the credit documents but had not enforced them as of the notice; company and lenders remain in discussions.

Why It Matters

• A declared default on the term loan is a material credit event: it gives lenders contractual rights (including potential acceleration or enforcement of collateral remedies), which could affect HydroFarm’s liquidity and operations if exercised.
• Termination of the revolving credit line removes a previously available source of working capital, even though some contract provisions survive termination.
• The company’s stated pursuit of strategic alternatives and ongoing lender negotiations signals active efforts to address capital structure and liquidity, but outcomes and timing remain uncertain (per the filing’s forward‑looking statements). Investors should consider these developments when assessing company risk and near-term financing needs.