Certain of Vireo Growth’s indirect non-cannabis subsidiaries have entered into a senior secured asset-based revolving credit facility providing a $65 million initial commitment, expandable to $85 million and further to $105 million through a $20 million accordion feature, subject to customary conditions.
Borrowings under the revolving credit facility bear interest, at the borrowers’ election, at either term secured overnight financing rate (SOFR) plus an applicable margin of 1.75% to 2.00%, or the base rate plus an applicable margin of 0.75% to 1.00%, with the applicable margin determined by average availability. The facility also carries a 0.25% annual unused commitment fee on undrawn commitments.
The five-year revolving credit facility was established pursuant to a credit agreement led by Bank of Montreal as administrative agent, with BMO Capital Markets acting as arranger and bookrunner.
Proceeds from the facility may be used to refinance certain existing indebtedness of the subsidiaries, fund working capital, capital expenditures and other general corporate purposes, and finance permitted acquisitions.
“This facility marks an important milestone in the continued evolution of Vireo’s capital structure and further enhances our financial flexibility,” Tyson Macdonald, chief financial officer of Vireo, said. “We believe this financing provides an efficient and scalable source of capital to support our disciplined acquisition strategy, invest in organic growth initiatives and continue integrating and optimizing recently acquired businesses. We are pleased to partner with Bank of Montreal and the lending group as we continue executing on our long-term strategy.”
The revolving credit facility has a five-year term and is secured by substantially all of the assets of the company’s non-cannabis subsidiaries that are parties to the credit facility. Additional information regarding the facility, including its material terms and conditions, will be included in the company’s regulatory filings.
