Business
La Rosa Holdings Announces Debt Restructuring; Conversion Rights Halted and Principal & Interest Payments Deferred Until February 2025
Restructuring benefits financial position and reduces debt under the notes by approximately 9.5% Reaffirms target of $100 million annualized revenue exit run
About this update from La Rosa Holdings Corp.
[{"type":"text","content":"Restructuring benefits financial position and reduces debt under the notes by approximately 9.5% Reaffirms target of $100 million annualized revenue exit run rate for 2024, with profitability expected in 2025 Celebration, FL, Sept. 26, 2024 (GLOBE NEWSWIRE) -- La Rosa Holdings Corp. (NASDAQ: LRHC) (“La Rosa” or the “Company”), a holding company for six agent-centric, technology-integrated, cloud-based, multi-service real estate segments, today announced that it has entered into an amendment with its noteholder to restructure debt under three outstanding notes issued to the holder in February, April, and July 2024. As part of the amendment, the Company agreed to repay to the holder $200,000 of the debt under the notes, and all principal and interest payments under the notes have been deferred until February 1, 2025. Starting February 1, 2025, the Company will pay monthly payments to the holder, which shall be first applied to the July note until it is repaid in the entirety, and then to the April note until it is repaid in the entirety, following which such payments shall be applied to the February note. Additionally, maturity dates under all three notes were extended to August 1, 2025, and the holder agreed not to effectuate any conversions of the notes unless the Company fails to comply with the amendment or there is an event of default under the notes. The Company believes that this strategic restructuring strengthens the Company’s financial position by reducing total debt under the notes by approximately 9.5%, providing greater financial flexibility to pursue growth initiatives and long-term objectives. Joe La Rosa, CEO of La Rosa Holdings, commented, “We believe that this debt restructuring is an important step in strengthening our financial foundation as we accelerate our growth momentum. By consolidating payments under the outstanding notes, deferring principal and interest payments until February 2025 and the holder agreeing to halt conversions of the notes, we are significantly improving our financial position. This not only reduces our debt under the notes by approximately 9.5%, but also provides us with the flexibility to reinvest in the business, focus on expansion, and execute our strategic acquisition plans.” “We have additional acquisitions that we hope to close by the end of the year, which we plan to primarily fu...