TerrAscend extended the maturity date of its $75 million credit facility due December 18, 2019, with funds managed by JW Asset Management, for up to three months.
TerrAscent also executed a term sheet with funds managed by its lender to convert any amounts outstanding under the credit facility into a two-year term loan with an expected maturity of March, 2022.
Jason Wild, chairman of the board of TerrAscend, is the president and chief investment officer at JW Asset Management.
In conjunction with the term sheet to convert the credit facility into a term loan, the credit facility maturity has been extended to March 15, 2020 or until such time as the parties have completed the required documentation to commence the conversion.
The credit facility will now carry an interest rate of 12.5% and the term loan, once finalized, is expected to provide for 12.5% interest, paid semiannually, a 1.5% origination fee on borrowed amounts and certain protective covenants. It is expected that funds advised by JW Asset Management, as well as third parties, will participate in the term loan. Definitive terms agreed by the parties for the term loan will be announced upon signing.
The extension of the credit facility and commitment of funds for two years by JW Asset Management allows TerrAscend a non-dilutive source of financing during a time when we expect regulatory, banking and capital markets improvement.
TerrAscend is the only global cannabis company licensed for sales in Canada, the U.S. and the EU.
