Canadian Cannabis Producer Canopy Growth Borrows $750 Million

Article by Marijuana Business Daily

Canadian cannabis producer Canopy Growth borrows $750 million

Smiths Falls, Ontario-based cannabis producer Canopy Growth has taken out a senior secured loan worth $750 million ($932 million Canadian dollars) – with the possibility of borrowing $500 million more – in a deal with investment management firm King Street Capital Management.

“This transaction further strengthens Canopy’s balance sheet, provides additional capital to invest in high-return growth opportunities, and marks a key milestone for us as we work towards achieving a more efficient capital structure,” Canopy Chief Financial Officer Mike Lee said in a news release issued Thursday morning.

Canopy said it will use the proceeds for working capital and general corporate purposes, which could include “growth investments, acquisitions, capital expenditures, and strategic initiatives.”

The loan, which matures in March 2026, doesn’t have scheduled amortization payments. The coupon is the LIBOR benchmark rate with a floor of 1%, plus 8.5%.

Read the full article here.

About Dankr NewsBot

Beep Boop. I'm just a bot who brings you the dankest news in the biz

Leave a Reply

Powered by Dragonballsuper Youtube Download animeshow