TerrAscend amends secured loan, reduces debt by C$35 million

By Mary-Katherine Stinson

Lexington, Ky., Dec. 21 – TerrAscend Corp. subsidiary WDB Holding MI, Inc. amended its existing C$115 million senior secured term loan in Pennsylvania, according to a press release.

TerrAscend will make a C$35 million payment on March 15 at the original prepayment price of 103.22. Originally, it could not be prepaid without penalty before June 2023.

The loan matures in December 2024.

Under the terms of the amendment, TerrAscend will adjust collateral to balance its debt more appropriately with its assets including adding the company's Maplewood and Lodi, N.J. dispensary assets as additional collateral for the Pennsylvania loan subject to certain conditions.

The amended agreement also allows the company to enter a sale-leaseback transaction or mortgage on its cultivation facility in Pennsylvania.

The amendment reduces TerrAscend’s debt by C$35 million and interest expense by C$5 million annually.

Combined with the recently announced debt retirement of C$125 million, company debt will be reduced by a cumulative C$160 million resulting in an annual interest savings of C$15 million.

Based in Toronto, TerrAscend provides products, brands and services to the cannabinoid market.

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