Cresco Labs obtained commitments to refinance its senior secured credit facility.
The refinancing, upon closing, will provide for a new senior secured term loan totaling $325 million, bearing an interest rate of 12.5% per annum, and maturing on the fifth year anniversary of the closing of the refinancing. The new facility will replace the company’s existing $360 million credit facility, providing enhanced financial flexibility and favorable terms, including provisions that will allow for the prepayment of up to $125 million at a reduced prepayment premium.
“Securing this refinancing is a testament to the strength of our business and the trust we’ve built with top-tier institutional lenders,” Charlie Bachtell, CEO of Cresco Labs, said. “In an environment where capital is scarce, Cresco stands out. We’ve extended our maturity, improved our balance sheet position, and done so without dilution. This positions us to play offense instead of focusing on refinancing risk. It’s a strategic win in a capital-constrained market.”
Proceeds from the new facility, together with cash on hand, will be used to repay in full the existing term loan, fund capital expenditures and support targeted growth initiatives across Cresco’s core U.S. markets.
The refinancing was negotiated at arm’s length and includes customary financial and operational covenants. The facility contains no equity or convertible features. A.G.P. Canada Investments ULC and Cormark Securities acted as lead financial advisors and lead arrangers on the transaction. The lead lenders were advised by Paul Hastings. The refinancing is expected to close on or about August 13, 2025, subject to customary closing conditions.
