Trulieve Completes $350M Private Placement To Repay Harvest Health's Debt

Trulieve Cannabis Corp. TRUL TCNNF reported Wednesday it has completed its previously announced private placement of 8% senior secured notes due 2026 for aggregate gross proceeds of $350 million.

The notes, issued at 100% of face value, are senior secured obligations of the company and rank pari passu with the senior secured outstanding notes of the company maturing in 2024. The notes bear interest at a rate of 8% per annum, payable semi-annually in equal installments until the maturity date unless earlier redeemed or repurchased. The notes will mature on October 6, 2026.

Canaccord Genuity Corp. acted as sole agent and sole bookrunner for the offering.

 “Trulieve’s strength in the capital markets provides us access to capital for strategic growth plans. Closing on the $350 million debt issuance, which we believe to be the largest debt financing to date of any public multi-state operator, combined with our cash position and continued cash flow from operations, has us well-positioned for our future goals in terms of expansion in key markets,” Trulieve CEO, Kim Rivers stated. “At eight percent, this nondilutive financing carries exceptional terms and underscores Trulieve's industry-leading profitability and solid financial profile.”

The company plans to use the net proceeds of the offering to redeem certain outstanding indebtedness of Harvest Health & Recreation Inc following the completion of its acquisition of Harvest on October 1, 2021, and for capital expenditures and other general corporate purposes.

Price Action

Trulieve’s shares were trading 0.36% higher at $29.61 per share at the time of writing Wednesday morning.

Photo: Courtesy of Elsa Olofsson on Unsplash