Ascend Wellness Holdings (AWH), a multi-state, vertically integrated cannabis operator, closed on a $210 million senior secured term loan with Seaport Global Securities as lead manager. AWH intends to use the proceeds to repay substantially all of the company’s debt, excluding approximately $12 million of outstanding acquisition payments with near zero interest rates; to finance the company’s pending investment in MedMen NY; and to support the company’s future growth and acquisition initiatives. Prior to closing the term loan at the end of Q2/21, AWH had $104.2 million in cash and equivalents.

“I am thrilled to secure this non-dilutive financing, which both reduces our overall cost of capital and will fuel the growth of our business as we invest in scaling our strategic footprint. We saw tremendous interest and had healthy participation in the term loan. Our marketing process, lead-managed by Seaport Global Securities, introduced us to a very high-quality mix of institutional investors, family offices and hedge funds. We are excited to include this new class of stakeholders into our capital structure via the senior debt financing and look forward to the opportunity to expand our relationship with many of these investors over time in future debt and equity financings.” Abner Kurtin, founder and CEO of AWH, said. “We are actively building one of the most robust networks of retail stores and cultivation facilities in the highest quality markets. With our strong balance sheet and successful track record, we are well positioned to implement our growth strategies to take advantage of the significant market opportunity ahead and drive strong value for our shareholders.”

The term loan will bear interest of 9.5% per annum, payable quarterly in arrears, with a maturity date of Aug. 27, 2025. The term loan is secured by a first lien on all company assets. Subject to certain conditions of the agreement, AWH has the ability to increase the facility by up to $65 million if desired.

The placement was lead-managed by Seaport Global Securities and co-managed by ATB Capital Markets.