Cresco Labs receives commitments for loan refinancing

Executive Summary

• Cresco Labs Inc. has secured commitments to refinance its existing senior secured credit facility, replacing a $360-million (U.S.) facility with a new $325-million (U.S.) senior secured term loan.
• The new facility carries a 12.5% annual interest rate, matures in five years from closing, and includes provisions allowing for the prepayment of up to $125-million (U.S.) at a reduced premium.
• Proceeds will be used to repay the existing term loan in full, finance capital expenditures, and support growth initiatives, with an expected closing date of August 13, 2025.

Key Details

• New Facility Structure: Senior secured term loan totaling $325-million (U.S.).
• Interest Rate: 12.5% per annum.
• Maturity: Fifth year anniversary of the closing of the refinancing.
• Prepayment Terms: Provisions allow for the prepayment of up to $125-million (U.S.) at a reduced prepayment premium.
• Existing Facility Replacement: Replaces the company's existing $360-million (U.S.) credit facility.
• Use of Proceeds: Repayment of the existing term loan in full, financing of capital expenditures, and support for targeted growth initiatives across core U.S. markets.
• Covenants: Includes customary financial and operational covenants; contains no equity or convertible features.
• Advisers: A.G.P. Canada Investments ULC and Cormark Securities Inc. acted as lead financial advisers and lead arrangers. Paul Hastings LLP advised the lead lenders.
• Closing Date: Expected on or about August 13, 2025, subject to customary closing conditions.

Notable Quotes

• "Securing this refinancing is a testament to the strength of our business and the trust we've built with top-tier institutional lenders... We've extended our maturity, improved our balance sheet position and done so without dilution. This positions us to play offense instead of focusing on refinancing risk. It's a strategic win in a capital-constrained market." — Charlie Bachtell, Chief Executive Officer