Aurora Cannabis arranges C$200 million debt facility due 2021 via BMO

By Susanna Moon

Chicago, June 26 – Aurora Cannabis Inc. said it has lined up a new C$200 million debt facility due 2021 with the Bank of Montreal that may be upsized to C$250 million.

The facility consists of a C$150 million term loan and a C$50 million revolving credit facility.

Interest is expected to be in the mid-to-high 4% range, based on the current BMO Canadian prime rate, according to the announcement.

The company may request a term loan increase of up to another C$45 million “a short period” after the Bill C-45 is implemented in October, the release said.

BMO has also agreed to provide up to C$5 million in other credit instruments.

The debt facility will be primarily secured by Aurora’s production facilities, including Aurora Sky, Aurora Mountain and Aurora Vie.

“The shift to traditional debt financing is significant,” Glen Ibbott, chief financial officer of Aurora, said in the press release.

“Our cost of capital continues to decrease, providing us a distinct competitive advantage as we execute on our growth strategy. The non-dilutive nature and attractive pricing are consistent with Aurora's commitment to generating shareholder value.”

The loans can be repaid without penalty at Aurora’s discretion.

Aurora is a Vancouver, B.C.-based medical marijuana producer and distributor.

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