Canopy Growth Raises US$750 Mln Senior Secured Term Loan

(RTTNews) - Canopy Growth Corp. (CGC, WEED.TO) said that it reached a credit agreement with Funds advised by King Street Capital Management, L.P.

As per the Credit Agreement, the company has raised a US$750 million senior secured term loan. The Company also has the ability to obtain up to an additional US$500 million of incremental senior secured debt pursuant to the Credit Agreement.

The Term Loan Facility has no amortization payments and matures on March 18, 2026.

Canopy Growth said it will use the gross proceeds for working capital and general corporate purposes, including without limitation, growth investments, acquisitions, capital expenditures, and strategic initiatives.

The Term Loan Facility has a coupon of LIBOR plus 8.50% and is subject to a LIBOR floor of 1.00%.

The company's estimated pro forma cash, cash equivalents and short-term investments position as at December 31, 2020 would have been about C$2.5 billion.