AFC Gamma Announces $100M Raise Via Offering Of Senior Unsecured Notes Due 2027

Cannabis-focused commercial real estate finance company AFC Gamma, Inc. AFCG is raising $100 million through a private offering of senior unsecured notes due in 2027 to qualified institutional buyers.

The West Palm Beach, Florida-based company plans to use the net proceeds from the offering to fund loans related to unfunded commitments to its existing borrowers and to originate and participate in commercial loans to companies operating in the cannabis industry that are consistent with its investment strategy, as well as for working capital and other general corporate purposes.

AFC Gamma did not disclose the exact timing and terms of the offering, depending on market conditions and other factors.

The Notes will be AFC Gamma's general unsecured and unsubordinated obligations, guaranteed by each of the company's existing and future subsidiaries other than certain immaterial subsidiaries.

The Notes will not be guaranteed by AFC Gamma's subsidiary on the issue date of the notes, the company said Wednesday.

On Monday, the company announced it has boosted its senior credit facility with Justice Cannabis Co. by $53.4 million to $75.4 million. AFC Gamma now holds a total of $65.4 million of the expanded credit facility, with $10 million syndicated to an affiliate.

Price Action

AFC Gamma's shares traded 0.93% lower at $21.81 per share at the time of writing Wednesday morning.

Photo: Courtesy of Michael Longmire on Unsplash