CIBC and Bank of Montreal provided a C$50 million ($38.075 million) term loan and a C$15 million ($11.423 million) revolving loan to HEXO, an international provider of cannabis products.

Under the terms of the credit facility, the secured debt financing will be provided at a rate of interest expected to average in the mid-to-high 5% per annum range over its three-year term. The loans also included an uncommitted option to increase the facility by up to C$135 million ($102.8 million).

Both loans will mature in 2022.

Canadian Imperial Bank of Commerce acted as sole bookrunner, co-lead arranger and administrative agent on the facility, while Bank of Montreal acted as co-lead arranger and syndication agent.

The loans will be used to fund expansion and improvement projects and provide working capital.