HYDROFARM HOLDINGS GROUP INC

On November 1, 2024, Hydrofarm Holdings Group, Inc. and certain of its subsidiaries entered into the “Sixth Amendment” to the Revolving Credit Facility with JPMorgan Chase Bank, N.A., as administrative agent, issuing bank and swingline lender, and the lenders from time to time party thereto. The Sixth Amendment reduced the maximum commitment amount under the Revolving Credit Facility from $55 million to $35 million.

As of September 30, 2024, the Company’s borrowing base assets supported availability of approximately $17 million under the Revolving Credit Facility. Accordingly, the Company does not expect the maximum commitment amount reduction to have any material immediate negative impact on its overall liquidity position. Furthermore, as of November 1, 2024, the Company had no borrowings outstanding under the Revolving Credit Facility. The Sixth Amendment did not modify the existing financial covenant relating to the applicability of the Company’s Fixed Charge Coverage Ratio. The Company is charged a fee of 0.40% per annum for unused borrowings under the maximum commitment amount and anticipates a reduction in these fees in future periods as a result of the commitment reduction pursuant to the Sixth Amendment.

The foregoing description of the Sixth Amendment does not purport to be complete and is qualified in its entirety by reference to the provisions of the Sixth Amendment, a copy of which is filed as Exhibit 10.5 to this Form 10-Q and is incorporated herein by reference.