Dragonfly Energy Finalizes Comprehensive Term Loan Restructuring Agreements
Dragonfly Energy Holdings Corp. (“Dragonfly Energy” or the “Company”) (Nasdaq: DFLI), a leader in energy storage and battery technology, has successfully finalized agreements to restructure its outstanding debt under its existing term loan agreement (the “Term Loan Agreement”). This strategic move significantly improves the Company’s financial position by reducing debt and optimizing capital resources to support its growth initiatives, including the expansion of proprietary battery manufacturing and technology development.
“This restructuring represents a pivotal milestone in fortifying Dragonfly Energy’s financial foundation and enhancing our flexibility,” said Dr. Denis Phares, CEO of Dragonfly Energy. “Together with our recent capital raises, this transaction positions us to capitalize on growth opportunities and deliver long-term value to our shareholders.”
Key Highlights of the Restructuring Agreements:
- Debt Prepayment: The Company prepaid $45.0 million of the senior secured term loan principal using proceeds from its recent stock offering.
- Debt-to-Equity Conversion: Lenders converted $25.0 million of the term loan principal into newly created preferred stock, convertible into common stock at $3.15 per share, as previously disclosed.
- Debt Forgiveness: Lenders forgave $5.0 million of the term loan principal.
- Remaining Loan Terms: The remaining $19.0 million principal carries a fixed 12% annual interest rate, with monthly payments starting December 31, 2025, and a maturity date in October 2027.
- Covenant Waivers: Financial covenants under the Term Loan Agreement have been waived through December 31, 2026.
About Dragonfly Energy
Dragonfly Energy Holdings Corp. is a leading innovator in lithium battery technology, specializing in cell manufacturing, battery pack assembly, and system integration. Through its Battle Born Batteries® brand, the Company has become a trusted name in the lithium battery industry, with hundreds of thousands of battery packs deployed across top-tier OEMs and a diverse retail customer base.
As a pioneer in domestic lithium battery cell production, Dragonfly Energy’s patented dry electrode manufacturing process delivers versatile, chemistry-agnostic power solutions for applications ranging from energy storage systems to electric vehicles and consumer electronics. The Company’s mission includes the future deployment of its proprietary, nonflammable, all-solid-state battery cells, advancing clean energy solutions.
For more information about Dragonfly Energy and its commitment to sustainable energy innovation, visit investors.dragonflyenergy.com.
