ATB served as administrative agent, and BMO as syndication agent. Under the terms of the credit agreement, the lenders will provide Sundial with an initial C$90 million ($67 million) of secured debt facilities comprised of a C$84 million ($63 million) senior secured term credit facility and a C$6 million ($4.5 million) senior secured revolving operating facility.
Under the credit agreement, Sundial also has the right to an additional facility to a maximum of C$50 million ($37 million) for a total of C$140 million ($105 million) to finance the construction of additional buildings at its Canadian production facilities, subject to the consent of the Lenders and satisfaction of certain other conditions.
Upon closing of the credit agreement, approximately C$48 million ($36 million) of the credit facility was drawn to refinance amounts owing under the company’s prior debt facility with ATB. The term of the credit facility is two years. the credit facility is secured by all of sundial’s Canadian assets, including its production facilities comprised of the flagship production facility located in Olds, AB, the Rocky View, Alberta facility and the purpose-built facility currently being constructed in Merritt, BC.
“With the completion of the credit facility, including the C$50 million accordion feature, and the proceeds from our recent IPO, we are well capitalized to execute our business plan in both Canada and the UK/Europe. This is a significant step for our business and will allow Sundial to focus on what we do best which is to proudly craft pioneering cannabis brands to Heal, Help and Play,” said Torsten Kuenzlen, CEO of Sundial.