- Closes $150 million 5-year credit facility at an industry-leading interest rate of SOFR +5.00%
- Utilizes proceeds to retire existing senior secured debt, due April 30, 2025
- Oversubscribed, non-brokered offering is a first-of-its-kind of bank-only financing in the U.S. cannabis industry
CHICAGO and VANCOUVER, British Columbia, Sept. 12, 2024 – PRESS RELEASE – Green Thumb Industries Inc., a leading national cannabis consumer packaged goods company and owner of RISE Dispensaries, announced it has closed on a $150 million 5-year syndicated credit facility led by Valley National Bank, a regional bank with over $62 billion in assets and the principal subsidiary of Valley National Bancorp. The company intends to use the proceeds along with existing cash to retire its $225 million senior secured debt due April 30, 2025.
“This financing is a first-of-its kind credit facility for the U.S. cannabis industry, marking a major step for Green Thumb and the cannabis industry broadly,” Green Thumb founder, Chairman and CEO Ben Kovler said. “Green Thumb’s focus on cash generation and disciplined capital allocation led us to this pivotal point.
“This new capital funding further strengthens our already clean balance sheet for another five years. We plan to double down on our efforts to build brands that Americans love. Cannabis is a means toward more well-being, and we know Americans are craving well-being now more than ever. The future of America is more cannabis, and this debt arrangement allows us to invest for the future of America’s well-being. We are grateful to Valley National Bank and the banking syndicate for partnering with us on this first-of-its kind financing in the U.S. cannabis industry.”
John Meyer, senior vice president of Commercial Banking at Valley National Bank, said, “Today’s announcement is a continuation of our longstanding partnership with Green Thumb and is a reflection of GTI’s strong reputation as both a market leader in legal cannabis and as a company focused on best use of capital to build sustainable growth, all while maintaining a strong balance sheet. At Valley, we are committed to relationship banking while providing tailored solutions to our clients. We are thrilled to successfully execute upon this syndicated loan facility for Green Thumb, a first-of-its-kind bank financing for the U.S. cannabis industry.”
The notes have a maturity date of Sept. 11, 2029, and will bear interest from the date of issue at Secured Overnight Financing Rate (SOFR) + 500 basis points, payable quarterly. The transaction did not involve the issuance of any Green Thumb equity to any of the participating banks.
