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Wednesday, May 18, 2022
Mugglehead Magazine
Alternative investment news based in Vancouver, B.C.

Business

Trulieve adds another US$75M to massive debt facility

The expanded debt funding follows the firm’s US$2.1-billion acquisition of former rival Harvest Health last year

Trulieve adds another US$75M to massive debt facility
Trulieve is dominant in Florida, where it has over 80 stores and serves half of the state’s massive medical market. Photo via Trulieve

Florida-based medical pot behemoth Trulieve Cannabis Corp. (CSE: TRUL) (OTCQX: TCNNF) is expanding an existing low-risk debt facility to nearly half-a-billion dollars.

On Friday, the firm said it closed a second tranche of senior secured notes for gross proceeds of US$75 million, expanding upon the facility announced last September for a total of US$425 million (C$543 million).

The notes are due in 2026 and carry an annual interest rate of 8 per cent. Canaccord Genuity is acting as the sole agent for the offering.

In a previous statement, Trulieve said the funds would go toward paying off indebtedness related to its US$2.1-billion all-stock acquisition of Harvest Health & Recreation Inc. in October, as well as capital expenses and general corporate purposes.

Read more: Trulieve acquires Harvest, becomes largest cannabis operator in US

Read more: Harvest Health deal to test Trulieve’s industry-leading profits

“Trulieve’s strong financial profile and profitable track record afford us access to non-dilutive growth capital at industry leading terms for U.S. cannabis companies with multi-state operations,” CEO Kim Rivers said in Friday’s statement.

“This additional funding provides greater flexibility as we execute on our strategic initiatives in 2022.”

In its third quarter ended Sept. 30, Trulieve reported US$224.1 in sales, US$18.6 million in net income as well as adjusted earnings before interest, tax, depreciation and amortization of US$98 million.

Company shares fell around 2 per cent Friday to $23.75 on the Canadian Securities Exchange — that’s the lowest point for the stock since August 2020.

 

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