Cresco Labs upsizes five-year senior term loan to $400 million

By Marisa Wong

Los Angeles, Aug. 13 – Cresco Labs announced it closed an agreement with lenders to upsize its senior secured term loan to an aggregate principal amount of $400 million.

The loan bears interest at a reduced rate of 9.5% and matures on Aug. 12, 2026, according to a press release.

The company intends to use the proceeds to retire its existing $200 million credit facility, fund capital expenditures and pursue other targeted growth initiatives within the U.S. cannabis sector.

The loan does not include any equity or convertible components, and the total facility amount is being provided by a syndicate of five existing institutional lenders.

The terms of the loan were negotiated at arm’s length with the agent and lead investor and include customary restrictive covenants, the company noted.

The wholesaler of branded cannabis products is based in Chicago.

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