TerrAscend Reduces Outstanding Debt by US$30 Million
Elects to pay down $30 million of its maturing $55 million senior secured Michigan loan, refinancing the remaining $25 million
TORONTO, Nov. 30, 2022 /CNW/ – TerrAscend Corp. (“TerrAscend” or the “Company”) (CSE: TER) (OTCQX: TRSSF), a North American cannabis operator, today announced that its subsidiary, WDB Holding MI, Inc. (DE), and all subsidiaries of TerrAscend (collectively, the “Borrowers”), refinanced the existing senior secured term loan of $55.0 million previously announced on November 22, 2021 (the “Michigan Loan”), pursuant to an amendment (the “Amendment”). The Amendment provides for a senior secured term loan with a principal amount of $25.0 million, plus incremental term loans of $30.0 million at the option of TerrAscend and subject to consents from the required lenders for an aggregate amount of $55.0 million. On November 29, 2022, the Borrowers repaid $55.0 million outstanding principal amount under the original Michigan Loan, using $30.0 million of cash on hand and $25.0 million through borrowing pursuant to the Amendment. Chicago Atlantic Admin, LLC serves as administrative agent for the lenders under the Michigan Loan and as collateral agent for the secured parties thereto.
Pursuant to the Amendment, the Michigan Loan bears interest on $25.0 million at a per annum rate equal to the greater of (i) the U.S. “prime rate” plus 6.00%, and (ii) 13.0%. The Michigan Loan, as amended, matures on November 1, 2024. No prepayment fees are owed if the Company voluntarily prepays the loan after 18 months. The additional $30.0 million incremental term loans available under the amendment have not been drawn at this time.
We appreciate Chicago Atlantic’s flexibility in helping structure an optimal outcome for TerrAscend.
Jason Wild, Executive Chairman of TerrAscend
This refinancing exemplifies TerrAscend’s focus on reducing expenses, including interest expense, while driving sales growth and continued positive cash flow from operations.
John Mazarakis, Partner at Chicago Atlantic, added, “Since the beginning of Chicago Atlantic and TerrAscend’s relationship upon the Gage business combination, we have been impressed with TerrAscend management’s execution and vision, and we are pleased to continue our relationship with them through this facility.”
The Canadian Securities Exchange (“CSE”) has neither approved nor disapproved the contents of this news release. Neither the CSE nor its Market Regulator (as that term is defined in the policies of the CSE) accepts responsibility for the adequacy or accuracy of this release.
About Chicago Atlantic and Green Ivy Capital, LLC
Chicago Atlantic Advisers, LLC is an asset management firm specializing in direct lending and opportunistic private credit investing. Founded in 2018 by Tony Cappell, John Mazarakis, and Andreas Bodmeier, the firm seeks to capitalize on North American investment opportunities that are time-sensitive, complex, or in dislocated markets, where risk is fundamentally mispriced. Through its affiliate Green Ivy Capital, LLC, the firm manages a diversified portfolio of credit investments in the cannabis space and is actively investing across the value chain.
About TerrAscend
TerrAscend is a leading North American cannabis operator with vertically integrated operations in Pennsylvania, New Jersey, Michigan and California, licensed cultivation and processing operations in Maryland and licensed production in Canada. TerrAscend operates The Apothecarium and Gage dispensary retail locations as well as scaled cultivation, processing, and manufacturing facilities in its core markets. TerrAscend’s cultivation and manufacturing practices yield consistent, high-quality cannabis, providing industry-leading product selection to both the medical and legal adult-use markets. The Company owns several synergistic businesses and brands, including Gage Cannabis, The Apothecarium, Ilera Healthcare, Kind Tree, Prism, State Flower, Valhalla Confections, and Arise Bioscience Inc. For more information, visit www.terrascend.com.
