Curaleaf Holdings today announced that it has entered into an amended and restated credit agreement with Needham Bank of its revolving credit facility, expanding the borrowing capacity from $40 million to $100 million and extending the maturity to up to five years.
The credit facility has an initial term of one year and bears interest on any outstanding principal of 7.99%. The facility is subject to extension for up to five years with a rate step up to 8.99% in the event of the company refinancing the senior note facility due 2026.
Curaleaf intends to draw on the credit facility to pay a minimum of $50 million of its remaining, higher interest-bearing, acquisition related debt while also maintaining ample capacity to support working capital needs.
"This first of-its-kind transaction of this scale in the cannabis industry was backed by the direct support and strong conviction of our lenders in our business and future," said Ed Kremer CFO of Curaleaf. "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."
