Synergy CHC Announces New $20 Million Long-Term Credit Facility

Rhea-AI Summary

Synergy CHC Corp. (NASDAQ: SNYR) has secured a $20 million term loan credit agreement with ACP Agency, LLC, extending through May 2029. The company received $15 million upfront at SOFR plus 8.5% interest rate, with interest-only payments through 2025. Starting January 2026, quarterly principal payments begin at $175,000, increasing to $350,000 per quarter from 2027. The facility includes a $2.5 million delayed draw facility and $2.5 million uncommitted term loan incremental facility. The refinancing aims to strengthen Synergy's capital structure, repay existing debt, and provide growth capital. The company will use the delayed draw proceeds to fully repay debt related to settlement agreements.

Positive

• Secured long-term financing through 2029 providing financial stability
• Interest-only payments through 2025 improving near-term cash flow
• Access to additional $5 million through delayed draw and incremental facilities
• Debt refinancing strengthens capital structure and provides growth capital

Negative

• High interest rate at SOFR plus 8.5%
• Increasing quarterly principal payment obligations starting 2026
• Existence of settlement agreements requiring debt repayment indicates previous issues

News Market Reaction – SNYR

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-1.45% News Effect

On the day this news was published, SNYR declined 1.45%, reflecting a mild negative market reaction.

Data tracked by StockTitan Argus on the day of publication.

WESTBROOK, Maine, June 04, 2025 (GLOBE NEWSWIRE) -- Synergy CHC Corp. (NASDAQ: SNYR) (“Synergy” or the “Company”), a provider of consumer health care and lifestyle products, announced today that it has entered into a $20 million term loan credit agreement, due May 2029 with ACP Agency, LLC. The proceeds will be used to pay down debt and provide the Company with growth capital.

Under the terms of the agreement, the Company received a $15 million term loan at closing, with an interest rate of SOFR plus 8.5%. The loan is interest-only through 2025, with quarterly principal payments of $175,000 beginning in January 2026, increasing to $350,000 per quarter in 2027 and beyond.

A $2.5 million delayed draw facility and $2.5 million uncommitted term loan incremental facility are also available to the Company.

“We are very pleased to have completed our debt refinancing, which supports our growth strategy and significantly strengthens our capital structure,” said Jack Ross, CEO of Synergy. “The long-term nature of the new facility enhances our balance sheet and provides the flexibility needed for our next phase of growth. Additionally, the delayed draw proceeds allow us to fully repay debt related to settlement agreements, positioning us for greater financial stability as we execute our strategic goals.”

About Synergy CHC Corp.

Synergy CHC Corp. is a provider of consumer health care and lifestyle products. Synergy's current brand portfolio consists of two marquee brands, FOCUSfactor, a clinically-tested brain health supplement that has been shown to improve memory, concentration and focus, and Flat Tummy, a lifestyle and wellness brand that provides a suite of nutritional products to help women achieve their weight management goals.

Investor Relations

Gateway Group
Cody Slach, Greg Robles
949.574.3860
SNYR@gateway-grp.com

FAQ

What is the size and terms of SNYR's new credit facility?

SNYR secured a $20 million credit facility due May 2029, with $15 million received upfront at SOFR plus 8.5% interest rate. The facility includes interest-only payments through 2025 and quarterly principal payments starting 2026.

How will Synergy CHC use the proceeds from the new credit facility?

The proceeds will be used to pay down existing debt, repay settlement-related debt through the delayed draw facility, and provide growth capital for the company.

What are the payment terms for SNYR's new credit facility?

The loan is interest-only through 2025, with quarterly principal payments of $175,000 beginning January 2026, increasing to $350,000 per quarter from 2027 onwards.

What additional funding options are available in SNYR's credit facility?

The facility includes a $2.5 million delayed draw facility and a $2.5 million uncommitted term loan incremental facility.

When does Synergy CHC's new credit facility mature?

The credit facility matures in May 2029.