Cresco Labs enters into $100 million senior secured term loan

By Sarah Lizee

Olympia, Wash., Jan. 23 – Cresco Labs entered into a non-brokered credit agreement for an up to $100 million senior secured term loan, according to a press release.

There is an option to increase the size of the facility to a maximum of $200 million.

The company expects to complete an initial drawdown of up to $100 million on or about Jan. 30, subject to the satisfaction of customary funding conditions.

The proceeds will be used to fund the expansion of operations in Illinois, closing and integration costs associated with pending acquisitions, and other strategic growth initiatives in key markets, the company said.

Commitments are provided by a broad syndicate of lenders. Each commitment may be for an 18-month or 24-month term, at the lender's option.

Loans made on the initial closing date will bear interest at a rate of about 12.7% per annum for 18-month loans and about 13.2% for 24-month loans, payable quarterly in arrears.

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

Cresco Labs is a cannabis operator based in Chicago.

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