Aurora Cannabis amends credit agreement for additional flexibility

By Taylor Fox

New York, Sept. 8 – Aurora Cannabis Inc. reached an agreement with its syndicate of banks regarding amendments to its secured credit agreement to provide additional flexibility during its business transformation plan, according to a news release.

The amendments include adjustment of the total funded debt-to-equity covenant to 0.28 to 1 for the fourth quarter of 2020 and the first quarter of 2021 and 0.25 to 1 thereafter.

The amendments also reduce the adjusted EBITDA milestones required for the trailing 12-month period ending June 30, 2021 to C$20 million from C$51 million, including delaying the requirement to generate positive adjusted EBITDA until the second quarter, in line with Aurora’s revised tactical commercial plan.

The amendments also reduce the size of the revolving facility to C$15 million from C$43 million to better align with Aurora’s average receivables balance and to reduce unnecessary standby fees.

Aurora Cannabis is an Edmonton, Alta.-based cannabis company.

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