Cresco closes $325-million (U.S.) term loan refinancing

Executive Summary

• Cresco Labs Inc. has closed a $325 million (U.S.) senior secured term loan refinancing, replacing its prior $360 million facility.
• The new facility carries a 12.5% annual interest rate, matures on August 13, 2030, and reduces total debt while extending maturity.
• Proceeds were used to repay the existing term loan in full, strengthening the balance sheet and removing near-term refinancing risk.

Key Details

• Transaction Amount: $325 million (U.S.) senior secured term loan.
• Interest Rate: 12.5% per annum.
• Maturity Date: August 13, 2030.
• Previous Facility: Replaced a $360 million (U.S.) facility.
• Use of Proceeds: Repayment in full of the existing term loan, combined with cash on hand.
• Key Terms:
  • Provides enhanced flexibility to prepay up to $125 million (U.S.) at a reduced premium.
  • No equity or convertible features.
  • Includes customary financial and operational covenants.
• Advisers:
  • Lead Financial Advisers and Lead Arrangers: A.G.P. Canada Investments ULC and Cormark Securities Inc.
  • Lead Lenders' Advisor: Paul Hastings LLP.

Notable Quotes

• "This transaction is another milestone in our disciplined approach to capital management. We have strengthened our balance sheet and removed near-term refinancing risk. With this foundation in place, we can remain focused on executing our growth strategy." — Charlie Bachtell, Chief Executive Officer