Will Reduce Debt and Reinforces Commitment to Prudent Capital Management
Cresco Labs Inc. (CSE: CL) (OTCQX: CRLBF) (FSE: 6CQ) (“Cresco Labs” or the “Company”), today announced that it has successfully obtained commitments to refinance its senior secured credit facility (the “Senior Loan”).
The refinancing, upon closing, will provide for a new senior secured term loan totaling US$325 million, bearing an interest rate of 12.5% per annum, and maturing on the 5th year anniversary of the closing of the refinancing. The new facility will replace the Company’s existing US$360 million credit facility, providing enhanced financial flexibility and favorable terms, including provisions that will allow for the prepayment of up to US$125 million at a reduced prepayment premium.
The refinancing comes at a time when access to capital remains highly constrained across the U.S. cannabis sector. With an estimated $2 billion in industry debt maturities coming due over the next 18 months, Cresco Labs’ ability to refinance its credit facility underscores the resilience of its business model and enables it to execute on its multi-year growth plan.
“Securing this refinancing is a testament to the strength of our business and the trust we’ve built with top-tier institutional lenders,” said Charlie Bachtell, CEO of Cresco Labs. “In an environment where capital is scarce, Cresco stands out. We’ve extended our maturity, improved our balance sheet position, and done so without dilution. This positions us to play offense instead of focusing on refinancing risk. It’s a strategic win in a capital-constrained market.”
Proceeds from the new facility, together with cash on hand, will be used to repay in full the existing term loan, fund capital expenditures, and support targeted growth initiatives across Cresco’s core U.S. markets.
The refinancing was negotiated at arm’s length and includes customary financial and operational covenants. The facility contains no equity or convertible features. A.G.P. Canada Investments ULC and Cormark Securities Inc. acted as lead financial advisors and lead arrangers on the transaction. The lead lenders were advised by Paul Hastings LLP. The refinancing is expected to close on or about August 13, 2025, subject to customary closing conditions.
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