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CHICAGO - Cannabis company Cresco Labs Inc. (CSE:CL) (OTCQX:CRLBF), which maintains a "GREAT" financial health rating according to InvestingPro, announced Wednesday it has secured commitments to refinance its senior secured credit facility with a new $325 million term loan.
The new five-year loan, bearing a 12.5% annual interest rate, will replace the company’s existing $360 million credit facility. With total debt of $645.73 million and a healthy current ratio of 2.75, the company maintains strong liquidity. According to a company press release, the refinancing includes provisions allowing for prepayment of up to $125 million at a reduced premium.
The transaction comes as the U.S. cannabis industry faces significant capital constraints, with an estimated $2 billion in industry debt reportedly maturing over the next 18 months.
"Securing this refinancing is a testament to the strength of our business and the trust we’ve built with top-tier institutional lenders," said Charlie Bachtell, CEO of Cresco Labs. The company’s operational strength is evidenced by its $697.32 million in revenue and robust 49.1% gross profit margin. For deeper insights into Cresco Labs’ financial metrics and growth potential, check out InvestingPro.
The new facility contains no equity or convertible features and was negotiated at arm’s length with customary financial and operational covenants. A.G.P. Canada Investments ULC and Cormark Securities Inc. acted as lead financial advisors and arrangers on the transaction.
Proceeds from the new facility, together with cash on hand, will be used to repay the existing term loan, fund capital expenditures, and support growth initiatives across Cresco’s U.S. markets.
The refinancing is expected to close on or about August 13, 2025, subject to customary closing conditions.
Cresco Labs operates in the cultivation, production, and branded product distribution segments of the cannabis industry, with a portfolio of brands including Cresco, High Supply, and FloraCal. The company also operates dispensaries nationally under the Sunnyside brand, generating $153.05 million in EBITDA over the last twelve months.
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