AFC Gamma, Inc. AFCG confirmed Thursday it has priced an offering of $100 million aggregate principal amount of 5.750% senior notes due 2027 to qualified institutional buyers. The Cannabis-focused commercial real estate finance company previously announced the offering at the beginning of October.
The notes mature on May 1, 2027, and the interest on them is payable semi-annually with the first payment on May 1, 2022. The offering is expected to close on November 3, 2021, subject to customary closing conditions.
AFC Gamma plans to use the collected net proceeds from the offering to support loans connected to unfunded commitments to current borrowers, to take part in commercial loans to cannabis businesses that are consistent with its investment strategy and for standard corporate practices.
The notes will be AFC Gamma’s general unsecured and unsubordinated obligations, will be fully and unconditionally guaranteed by each of AFC Gamma's existing and future subsidiaries other than certain immaterial subsidiaries and will rank equally in right of payment with all of AFC Gamma’s existing and future senior unsecured indebtedness and senior in right of payment to any of AFC Gamma’s subordinated indebtedness. The notes will not be guaranteed by AFC Gamma's subsidiary on the issue date of the notes.
Price Action
AFC Gamma’s shares closed Thursday market session 1.77% higher at $23.
Photo: Courtesy of Visual Stories || Micheile on Unsplash
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