Curaleaf Holdings increases, extends credit facility

Executive Summary

• Curaleaf Holdings Inc. has amended its revolving credit facility with Needham Bank, increasing the borrowing capacity from $40 million to $100 million and extending the maturity up to five years.
• The new secured facility carries an initial 7.99% interest rate (step‑up to 8.99% if senior notes are refinanced) and will be used to retire at least $50 million of higher‑interest acquisition debt while preserving liquidity for working capital.
• Management highlights the transaction as a “first‑of‑its‑kind” in the cannabis sector, signaling stronger institutional confidence and enhanced financial flexibility for growth initiatives.

Key Details

• Facility Size: Expanded to $100 million (up from $40 million).
• Lender: Needham Bank (amended and restated credit agreement).
• Term: Initial one‑year term with optional extensions up to five years.
• Interest Rate: 7.99% on outstanding principal; step‑up to 8.99% if senior note facility due 2026 is refinanced.
• Use of Proceeds:
• Minimum $50 million will be applied to repay higher‑interest acquisition‑related debt.
• Remaining capacity earmarked for working capital and other growth initiatives.
• Strategic Rationale: Provides greater flexibility to execute Curaleaf’s strategic plan, enhances capital structure, and demonstrates lender confidence in the company’s long‑term objectives.

Notable Quotes

“I couldn't be prouder of our team for the focus, discipline and collaboration that made completing this $100‑million facility possible… This increased credit line provides us greater flexibility to execute our strategic plan.” – Boris Jordan, Chairman & CEO

“It represents a significant step toward broader access to capital markets and signals progress toward establishing financial standards in a sector that has historically faced limited institutional participation.” – Ed Kremer, Chief Financial Officer