Curaleaf, an international provider of consumer cannabis products, entered into an amended and restated credit agreement with Needham Bank of its revolving credit facility, expanding the borrowing capacity from $40 million to $100 million and extending the maturity to up to five years.
“I couldn’t be prouder of our team for the focus, discipline, and collaboration that made completing this $100 million facility possible. Not only does this increased credit line provide us greater flexibility to execute our strategic plan but also demonstrates the confidence Needham has in our long-term objectives,” Boris Jordan, chairman and CEO of Curaleaf, said.
Ed Kremer, chief financial officer of Curaleaf, said, “This first of-its-kind transaction of this scale in the cannabis industry was backed by the direct support and strong conviction of our lenders in our business and future. It represents a significant step toward broader access to capital markets and signals progress toward establishing financial standards in a sector that has historically faced limited institutional participation. We are proud to have longstanding partners who not only champion our vision but also contribute to the advancement of the cannabis industry. This strengthened capital position will be key to advancing our growth initiatives, enhancing operational capabilities, and preserving financial flexibility during this critical phase of industry transformation.”
The upsized secured revolving credit facility has an initial term of one year and bears interest on any outstanding principal of 7.99%. The facility is subject to extension for up to five years with a rate step up to 8.99% in the event of the company refinancing the senior note facility due 2026. Curaleaf intends to draw on the credit facility to pay a minimum of $50 million of its remaining, higher interest-bearing, acquisition related debt while also maintaining ample capacity to support working capital needs.
