More Money For Curaleaf: Cannabis Co. Closes On $50M Private Placement Of 8% Senior Secured Notes

Curaleaf Holdings, Inc. CURA CURLF is in high demand. That’s why, on Tuesday, the cannabis company announced it has completed the offering of an additional allotment of $50 million aggregate principal amount of its existing 8.0% Senior Secured Notes due 2026.

What Happened

These new notes were offered under an existing trust indenture pursuant to which Curaleaf previously issued $425 million aggregate principal amount of 8.0 % Senior Secured Notes due 2026.

The additional botes have the same terms as the initial notes, which were issued at 100% of face value, are senior secured obligations of the company and bear interest at a rate of 8.0% per annum, payable semi-annually in equal installments until the maturity date, unless earlier redeemed or repurchased.

‘More Good News’

Curaleaf’s co-founder and chairman Boris Jordan celebrated the news on Twitter TWTR.

More good news today! @Curaleaf_Inc completes the offering of an additional allotment of US$50 million private placement of 8.0% senior secured noteshttps://t.co/Gr3Z4BuA0D $CURA $CURLF

— Boris Jordan (@Boris_Jordan) December 21, 2021

When the prior notes were issued, Joseph Bayern CEO of Curaleaf had stated, “This offering will allow us to refinance our existing debt at a materially lower interest rate and provides us with additional financial flexibility to execute our strategic growth initiatives. While this initial offering provides more than enough liquidity to refinance our existing debt and meet current needs, the new Indenture provides us a new degree of flexibility to raise debt financing to ensure we have ample liquidity to meet our needs now and into the future.”

The new notes only add to this position.

Seaport Global Securities LLC and Canaccord Genuity Corp. acted as placement agents for the Additional Notes in the United States and Canada, respectively.

Last week, Curaleaf announced the opening of a drive-thru cannabis dispensary right off the Las Vegas Strip, at 1736 Las Vegas Blvd.

Shares are trading slightly down on Tuesday.