Cresco Labs closed its previously announced refinancing of the company’s senior secured credit facility.
The new $325 million senior secured term loan bears an interest rate of 12.5% per annum and matures on Aug. 13, 2030. It replaces the company’s prior $360 million facility, reducing total debt, extending the maturity to 2030 and providing enhanced flexibility to prepay up to $125 million at a reduced premium.
“This transaction is another milestone in our disciplined approach to capital management,” Charlie Bachtell, CEO of Cresco Labs, said. “We have strengthened our balance sheet and removed near-term refinancing risk. With this foundation in place, we can remain focused on executing our growth strategy.”
Proceeds from the new facility, together with cash on hand, were used to repay in full the existing term loan. The facility contains no equity or convertible features and includes customary financial and operational covenants.
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.
