XS Financial Enters Into Upsized $39M Credit Facility With Needham Bank

XS Financial Inc.XSFXSHLF, a specialty finance company providing CAPEX and equipment financing solutions to US cannabis companies which recently reported its 3Q financial results, announced that it has entered into an upsized $39 million line of credit with Needham Bank.

Needham Bank offers an array of tech-forward products and services that businesses and consumers use to manage their financial needs.

According to a press release, XS Financial is increasing its commitment from $20 million to $35 million and remaining as the administrative agent. "The remaining $4 million is with an FDIC-insured bank participating in the Credit Facility," reads the press release.

"We are pleased to expand our partnership with Needham Bank, which is building one of the premier banking platforms for the U.S. cannabis market," stated David Kivitz, CEO of XS Financial. "This upsized Credit Facility provides XS Financial with significant financial resources to expand our market-leading portfolio of equipment leases."

Credit Facility Terms

Expiring in August 2024, the Credit Facility has a term of two (2) years from its initial closing.

"Loans made under the line of credit will bear interest at an annual rate equal to the Wall Street Journal Prime rate plus one percent (1.0%), with a floor of six percent (6%), and may be prepaid with no penalty at any time," per the press release.

"We are thrilled that we can provide XS Financial with the funding they need to grow their portfolio through this amplified Credit Facility. It has been a great experience working with their team to update this line of credit, and I look forward to continuing to build our relationship with XS Financial," stated James Daley, SVP - director of Structured Finance of Needham Bank.

Joseph Campanelli, chairman, president & CEO of Needham Bank said, "this Credit Facility is a true testament to James' and our lenders' ability to understand a company's unique needs and goals and tailor a solution to support them.”

XS Financial intends to use loan proceeds, together with cash on hand, to fund additional CAPEX and equipment leases with new and existing customers.

Get your daily dose of cannabis news on Benzinga Cannabis. Don’t miss out on any important developments in the industry.

Photo: Courtesy Of Dmitry Demidko On Unsplash