Synergy CHC Corp. (SNYR) hit with default notice on $17.6M term loan
Rhea-AI Filing Summary
Synergy CHC Corp. reported that on August 11, 2026 it received a notice of default from ACP Agency, LLC under its Term Loan Credit Agreement dated May 30, 2025. ACP asserted an Event of Default occurred after Synergy failed to make the interest payment due on August 3, 2026, following expiration of the cure period on August 6, 2026. ACP also stated that the forbearance period under a Forbearance Agreement dated May 28, 2026 terminated on August 6, 2026 and that a forbearance fee of $404,173.06 is now payable. Approximately $17.6 million principal remains outstanding under the Credit Agreement, excluding accrued interest, fees and expenses. ACP has reserved all rights and remedies, including charging interest at a post-default rate and accelerating the loan obligations.
Positive
- None.
Negative
- The company is in default under its Term Loan Credit Agreement due to a missed interest payment on August 3, 2026.
- A forbearance agreement terminated on August 6, 2026, removing prior lender forbearance protections.
- Synergy CHC now owes a forbearance fee of $404,173.06, adding to its financial obligations.
- Approximately $17.6 million of principal remains outstanding and the lender may charge a post-default interest rate and accelerate the debt.
Filing Explained
Against ACP’s asserted default and terminated forbearance, Synergy CHC Corp. reported
Sources and calculations
- Synergy CHC Corp. Form 8-K (2026-08-11)
- Synergy CHC Corp. latest quarterly fundamentals (2026-03-31)
- Cash and equivalents vs quarterly operating cash outflow, in days of cash use $292,115 / ($2,044,678 / 90) = [object Object]
8-K Event Classification
Item 2.04 — Triggering Events That Accelerate or Increase a Direct Financial Obligation
1 item
Item 2.04
Triggering Events That Accelerate or Increase a Direct Financial Obligation
Financial
An event triggered acceleration or increase of an existing financial obligation, such as a debt covenant breach.
Key Figures
Outstanding principal under Credit Agreement: $17.6 million
Forbearance fee: $404,173.06
Interest payment due date: August 3, 2026
+3 more
6 metrics
Outstanding principal under Credit Agreement
$17.6 million
Principal borrowings outstanding as of the report date under the Term Loan Credit Agreement
Forbearance fee
$404,173.06
Fee ACP asserted is due and payable upon termination of the forbearance period
Interest payment due date
August 3, 2026
Scheduled interest payment date that was not paid, leading to the Event of Default
Cure period expiration
August 6, 2026
Date the cure period expired, after which ACP asserted an Event of Default
Forbearance Agreement date
May 28, 2026
Execution date of the Forbearance Agreement whose period ACP said terminated August 6, 2026
Credit Agreement date
May 30, 2025
Original date of the Term Loan Credit Agreement cited in the default notice
Key Terms
Event of Default, Forbearance Agreement, post-default rate, Term Loan Credit Agreement, +1 more
5 terms
Event of Default financial
"ACP asserted that an Event of Default occurred under the Credit Agreement"
An event of default is a specific breach of a loan or bond agreement—such as missed payments or breaking agreed rules—that gives lenders the legal right to act, for example by demanding immediate repayment, seizing collateral, or accelerating other obligations. For investors, it’s a red flag because it can sharply reduce a company’s ability to operate or raise money, like a car lender repossessing a vehicle after missed payments, and often leads to falling share or bond prices.
Forbearance Agreement financial
"the forbearance period under the Forbearance Agreement, dated as of May 28, 2026"
A forbearance agreement is a temporary deal between a borrower and a lender where the lender agrees to delay or reduce payments instead of declaring a default; think of it as a pause button on a loan while both sides work out a longer-term fix. It matters to investors because it affects a company’s short-term cash flow and the likelihood of loan losses or restructuring, which can change credit risk and share value.
post-default rate financial
"including the right to charge interest at the post-default rate"
Term Loan Credit Agreement financial
"under the Company’s Term Loan Credit Agreement, dated as of May 30, 2025"
A term loan credit agreement is a formal contract where a borrower receives a fixed sum of money from a lender and agrees to repay it over a set period with interest, much like a multi‑year mortgage or car loan for a business. It matters to investors because the size, cost and rules of the loan affect a company’s cash flow, risk of default and ability to invest or pay dividends; restrictive conditions can also force operational changes.
administrative agent and collateral agent financial
"from ACP Agency, LLC, as administrative agent and collateral agent"
FAQ
What event did Synergy CHC Corp. (SNYR) disclose on August 11, 2026?
Synergy CHC Corp. disclosed receiving a notice of default from ACP Agency, LLC under its Term Loan Credit Agreement after missing an interest payment due August 3, 2026 and the cure period expiring on August 6, 2026.
Why is Synergy CHC Corp. (SNYR) in default under its credit agreement?
The company is in default because it failed to make the interest payment due August 3, 2026 under its Term Loan Credit Agreement, and the applicable cure period expired on August 6, 2026 without payment being made.
How much debt does Synergy CHC Corp. (SNYR) have outstanding under the Credit Agreement?
Synergy CHC Corp. reports that approximately $17.6 million principal amount of borrowings remains outstanding under the Term Loan Credit Agreement, excluding any accrued interest, fees, and expenses associated with the facility.
What are the financial consequences of the default for Synergy CHC Corp. (SNYR)?
Following the default, a forbearance fee of $404,173.06 is due and payable, and ACP may charge interest at a post-default rate, accelerate the company’s obligations, and exercise other rights and remedies under the loan documents.
What happened to Synergy CHC Corp.’s (SNYR) forbearance agreement?
ACP asserted that the forbearance period under the Forbearance Agreement dated May 28, 2026 terminated on August 6, 2026, meaning the lender is no longer forgoing enforcement actions tied to the existing default.
Who is ACP Agency, LLC in relation to Synergy CHC Corp. (SNYR)?
ACP Agency, LLC acts as the administrative agent and collateral agent under Synergy CHC Corp.’s Term Loan Credit Agreement and issued the notice of default and related assertions about the forbearance termination and fees.
AI-generated analysis. How Rhea-AI works. Not financial advice.
