TerrAscend Corp. TRSSF TER announced that its subsidiary, WDB Holding MI, Inc., and all subsidiaries of TerrAscend, refinanced the existing senior secured term loan of $55.0 million previously announced on November 22, 202, pursuant to an amendment. The amendment provides for a senior secured term loan with a principal amount of $25.0 million, plus incremental term loans of $30.0 million at the option of TerrAscend and subject to consents from the required lenders for an aggregate amount of $55.0 million.
On November 29, 2022, the borrowers repaid $55.0 million outstanding principal amount under the original Michigan loan, using $30.0 million of cash on hand and $25.0 million through borrowing pursuant to the amendment. Chicago Atlantic Admin, LLC serves as administrative agent for the lenders under the Michigan loan and as collateral agent for the secured parties thereto.
Pursuant to the amendment, the Michigan loan bears interest on $25.0 million at a per annum rate equal to the greater of the U.S. "prime rate" plus 6.00%, and 13.0%. The Michigan loan, as amended, matures on November 1, 2024. No prepayment fees are owed if the company voluntarily prepays the loan after 18 months. The additional $30.0 million incremental term loans available under the amendment have not been drawn at this time.
"We appreciate Chicago Atlantic's flexibility in helping structure an optimal outcome for TerrAscend," stated Jason Wild, executive chairman of TerrAscend. "This refinancing exemplifies TerrAscend's focus on reducing expenses, including interest expense, while driving sales growth and continued positive cash flow from operations."
John Mazarakis, partner at Chicago Atlantic, stated, "Since the beginning of Chicago Atlantic and TerrAscend's relationship upon the Gage business combination, we have been impressed with TerrAscend management's execution and vision, and we are pleased to continue our relationship with them through this facility."
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