Cresco Labs Revises Senior Secured Loan To $200M To Boost Growth Opportunities

Cresco Labs CL CRLBF extended the maturity of its senior secured term loan and raised it to $200 million.

The multi-state cannabis operator, or MSO, has had all its lenders agree to the extension and sign the new agreement, setting the maturity for Jan. 23, 2023 with a trimmed interested rate of 12% per year.

The loan was raised by $100 million, out of which $85 million was supported by both the current and new lenders and large institutional investors.

Furthermore, $15 million of the short-term liability with Opaskwayak Cree Nation was consolidated into the Senior Loan under the new agreement.

Cresco Labs noted that the new agreement enables it with a “greater prepayment optionality.”

Chicago-based cannabis company plans to utilize the proceeds from the increased loan to support the advancements of its operations across the nine states and other growth initiatives.

“As a company, we continue to display our responsible capital agenda,” Cresco Labs co-founder and CEO Charlie Bachtell said in a statement. “Today we have secured funding to take advantage of the growth opportunities in front of us, improved our cost of capital in a non-dilutive manner, and given ourselves enhanced flexibility in a dynamic capital environment.

“This agreement to extend and increase the Senior Loan reflects the strong growth and profitability that Cresco Labs has demonstrated and the confidence our investors have in our differentiated strategy. We too believe in the tremendous value of our organization and our ability to raise the standard of execution for this industry.”