CHICAGO–(BUSINESS WIRE)–PRESS RELEASE–Cresco Labs, one of the largest vertically integrated multistate cannabis operators in the United States, has announced that it has closed the recently announced non-brokered credit agreement for a senior secured term loan in an initial aggregate principal amount of US$100 million, with a mutual option to increase the size of the facility to a maximum of US$200 million. The proceeds from the senior loan will be used to fund the expansion of operations in Illinois, closing and integration costs associated with pending acquisitions, and other strategic growth initiatives in key markets. A broad syndicate of lenders participated in the senior loan, including U.S.-based institutional investors together with members of the company’s management and board of directors.
Charlie Bachtell, CEO and co-founder of Cresco Labs, commented, “The closing of this financing is an important event and was driven by the incredible opportunities we at Cresco have before us. We have worked to create a credit facility that strengthens our balance sheet in a non-dilutive manner–with no warrants nor convertibility to equity. This transaction demonstrates that capital is available to the top operators in this industry who demonstrate a disciplined strategic focus, a responsible allocation of capital, and a track record of operational execution. We are especially pleased to have closed the transaction with such a high-quality group of investors who have displayed a dedicated commitment to the long-term success of Cresco as we continue to execute our vision–to build the most important company in cannabis.”
The senior loan is for either an 18-month or 24-month term, at the lender’s option. The loans bear interest at a rate of approximately 12.7% per annum for 18-month loans and approximately 13.2% for 24-month loans, payable quarterly in arrears. The terms of the senior loan were negotiated at arm’s length with the agent and lead investor and include customary restrictive covenants.
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