Desjardins Capital Markets and Investissement Québec led a financial transaction of $46 million for online Canadian grocer Goodfood Market, which includes a $27.5 million revolving facility, a $12.5 million term loan and $6 million in additional short-term financing.

Goodfood will use the funds to support the continued growth of the company through expansion and automation capital expenditures, refinancing of existing credit facilities and general corporate purposes. The facilities feature variable interest rates of banker’s acceptance rate plus 250 basis points and come to maturity in November 2023.

“We are thrilled to have gained access to increased debt financing to support our strategic plan. Combined with our cash balance, we now have access to more than $125 million of liquidity, providing great flexibility to propel the business in its next phase of growth,” Philippe Adam, CFO of Goodfood, said. “This non-dilutive financing with an attractive cost of capital also provides us with the means to continue to strategically manage our capital allocation and working capital.”

“As we continue to penetrate and gain market share in the online grocery industry, we are very pleased to count on the support of tremendous and supportive partners such as Desjardins and Investissement Québec,” Jonathan Ferrari, CEO of Goodfood, said. “We are excited by the opportunity ahead of us and the favorable trends stemming from the acceleration of online grocery and meal solutions adoption by Canadians. With this financing transaction and our consistently strong execution, we are ideally positioned to cement our leadership in this high-growth market.”