Glass House Brands Announces New $50 Million Senior Secured Loan
Glass House Brands (GLASF) has secured a new $50 million senior secured loan maturing on January 31st, 2030. The new facility replaces their previous loan that was due in November 2026, extending the final balloon payment by 3 years. Key highlights include:
- Fixed interest rate of 8.58% for the entire term
- Interest-only payments for first 2 years
- Net cash inflow of $8.1 million after paying fees and previous loan balance
- Preserves $13.1 million in principal payments for 2025-2026
The loan requires maintaining $10 million minimum liquidity and a Fixed-Charge Coverage Ratio of 1.25x. It will be secured by first priority liens on the company's Camarillo, Padaro and Casitas greenhouse facilities and other assets excluding real estate. A $40 million balloon payment is due at maturity.
Glass House Brands (GLASF) ha ottenuto un nuovo prestito senior garantito di 50 milioni di dollari con scadenza il 31 gennaio 2030. La nuova struttura sostituisce il prestito precedente, in scadenza a novembre 2026, estendendo il pagamento finale a 3 anni. I punti salienti includono:
- Tasso d'interesse fisso del 8,58% per l'intera durata
- Pagamenti solo degli interessi per i primi 2 anni
- Afflusso di cassa netto di 8,1 milioni di dollari dopo aver pagato le commissioni e il saldo del prestito precedente
- Preserva 13,1 milioni di dollari in pagamenti di capitale per il 2025-2026
Il prestito richiede il mantenimento di una liquidità minima di 10 milioni di dollari e un rapporto di copertura dei costi fissi di 1,25x. Sarà garantito da privilegi di prima priorità sulle strutture serre dell'azienda a Camarillo, Padaro e Casitas e su altri beni esclusi gli immobili. Un pagamento finale di 40 milioni di dollari è dovuto alla scadenza.
Glass House Brands (GLASF) ha conseguido un nuevo préstamo senior garantizado de 50 millones de dólares que vence el 31 de enero de 2030. La nueva línea de crédito reemplaza su préstamo anterior que vencía en noviembre de 2026, extendiendo el pago final por 3 años. Los puntos clave incluyen:
- Tasa de interés fija del 8.58% durante todo el plazo
- Pagos solo de intereses durante los primeros 2 años
- Ingreso neto de efectivo de 8.1 millones de dólares después de pagar tarifas y el saldo del préstamo anterior
- Preserva 13.1 millones de dólares en pagos de capital para 2025-2026
El préstamo requiere mantener una liquidez mínima de 10 millones de dólares y un Ratio de Cobertura de Cargos Fijos de 1.25x. Estará garantizado por gravámenes de primera prioridad sobre las instalaciones de invernadero de la empresa en Camarillo, Padaro y Casitas, y otros activos excluyendo bienes raíces. Un pago final de 40 millones de dólares es exigible a la madurez.
글래스 하우스 브랜드 (GLASF)는 2030년 1월 31일 만기인 새로운 5천만 달러의 선순위 담보 대출을 확보했습니다. 새로운 대출은 2026년 11월에 만기가 도래하는 이전 대출을 대체하며, 최종 만기 지급을 3년 연장합니다. 주요 내용은 다음과 같습니다:
- 전체 기간 동안 8.58%의 고정 이자율
- 처음 2년 동안 이자만 지급
- 수수료 및 이전 대출 잔액을 지불한 후 810만 달러의 순 현금 유입
- 2025-2026년 동안 1,310만 달러의 원금 지급 보존
대출은 1천만 달러의 최소 유동성와 1.25배의 고정비용 커버리지 비율을 유지해야 합니다. 이는 회사의 카마릴로, 파다로 및 카시타스 온실 시설 및 부동산을 제외한 기타 자산에 대한 우선 담보로 제공됩니다. 만기 시 4천만 달러의 만기 지급이 필요합니다.
Glass House Brands (GLASF) a obtenu un nouveau prêt senior garanti de 50 millions de dollars arrivant à échéance le 31 janvier 2030. La nouvelle facilité remplace leur prêt précédent qui arrivait à échéance en novembre 2026, prolongeant le paiement final de 3 ans. Les points clés incluent :
- Taux d'intérêt fixe de 8,58% pour toute la durée
- Paiements uniquement des intérêts pendant les 2 premières années
- Afflux de trésorerie net de 8,1 millions de dollars après paiement des frais et du solde du prêt précédent
- Préserve 13,1 millions de dollars de paiements de capital pour 2025-2026
Le prêt exige le maintien d'une liquidité minimale de 10 millions de dollars et un ratio de couverture des charges fixes de 1,25x. Il sera garanti par des privilèges de première priorité sur les installations de serres de l'entreprise à Camarillo, Padaro et Casitas ainsi que sur d'autres actifs à l'exception des biens immobiliers. Un paiement final de 40 millions de dollars est dû à l'échéance.
Glass House Brands (GLASF) hat ein neues senior gesichertes Darlehen über 50 Millionen Dollar mit Fälligkeit am 31. Januar 2030 gesichert. Die neue Finanzierung ersetzt ihr vorheriges Darlehen, das im November 2026 fällig war, und verlängert die endgültige Ballonzahlung um 3 Jahre. Wichtige Highlights umfassen:
- Fester Zinssatz von 8,58% für die gesamte Laufzeit
- Nur Zinszahlungen in den ersten 2 Jahren
- Nettocashzufluss von 8,1 Millionen Dollar nach Zahlung von Gebühren und dem vorherigen Darlehenssaldo
- Bewahrt 13,1 Millionen Dollar an Kapitalzahlungen für 2025-2026
Das Darlehen erfordert die Aufrechterhaltung einer minimale Liquidität von 10 Millionen Dollar und ein Fixed-Charge Coverage Ratio von 1,25x. Es wird durch vorrangige Pfandrechte auf die Gewächshausanlagen des Unternehmens in Camarillo, Padaro und Casitas sowie auf andere Vermögenswerte, ausgenommen Immobilien, gesichert. Bei Fälligkeit ist eine Ballonzahlung von 40 Millionen Dollar fällig.
- New $50M loan with lower 8.58% fixed interest rate
- $8.1M immediate net cash inflow
- $13.1M cash preservation from delayed principal payments
- 3-year maturity extension to 2030
- Interest-only payments for first 2 years improving cash flow
- $40M balloon payment due in 2030
- Strict $10M minimum liquidity requirement
- Additional liens on company assets
- Maturing on January 31st, 2030, the new senior debt facility replaces our previous senior secured loan that was set to mature in late November 2026, pushing out the final balloon payment by an additional 3 years
- The interest rate will be fixed at
- After paying legal and loan fees for the new loan and
- With interest only payments until the 3rd year, the loan will preserve
LONG BEACH, Calif. and TORONTO, March 03, 2025 (GLOBE NEWSWIRE) -- Glass House Brands Inc. ("Glass House" or the "Company") (CBOE CA: GLAS.A.U) (CBOE CA: GLAS.WT.U) (OTCQX: GLASF) (OTCQX:GHBWF), one of the fastest-growing, vertically-integrated cannabis companies in the U.S., announced today the signing of a new
“I’m excited to share the great news that Glass House has secured a new senior secured credit facility,” Kyle Kazan, Co-Founder, Chairman and Chief Executive Officer of Glass House, commented. “Refinancing the credit facility strengthens our balance sheet, significantly improves our cash flow and pushes out the maturity of our senior secured debt into 2030. By negotiating this facility directly with the lender, Glass House has continued its tradition of cutting costs by arranging our own financing. The lender’s approval of the credit facility and the favorable terms of the loan are a testament to the strength of our long-standing relationship with the bank and to our shared vision of enabling this Company to continue its rapid growth. I’m particularly excited that our company has finally received debt with a rate and terms which are comparable to non-cannabis businesses.”
“Additionally, I want to extend a thank you to WhiteHawk Capital Partners (WHCP) whose senior secured loan was refinanced in this transaction. WHCP extended credit to us shortly after we went public and before we planted the first greenhouses at our SoCal Facility. Their confidence in our ability to execute at a critical inflection point cannot be understated.”
The interest rate for the new SSL facility will be fixed at
The loan will be secured by a first priority lien on the Company’s Camarillo, Padaro and Casitas greenhouse farms and facilities and a first priority lien on the rest of the Company’s assets excluding other real estate. Key covenants of note are:
- Minimum liquidity of
$10 million to be held in an account at the lending institution throughout the term of the loan. - Consolidated Fixed-Charge Coverage Ratio (FCCR)1 of at least 1.25x tested quarterly on a trailing-twelve-month basis with the first test to be on December 31st, 2024.
The Company intends to use the proceeds from the loan to pay back US
Footnotes
- FCCR is defined as Adjusted EBITDA minus income tax expense divided by current portion of long-term debt plus interest expense plus current portion of capital leases. Preferred equity dividend payments and convertible debt payments are not included in the calculation because the former can be suspended if needed and the latter can be paid in shares.
About Glass House Brands
Glass House is one of the fastest-growing, vertically integrated cannabis companies in the U.S., with a dedicated focus on the California market and building leading, lasting brands to serve consumers across all segments. From its greenhouse cultivation operations to its manufacturing practices, from brand-building to retailing, the company's efforts are rooted in the respect for people, the environment, and the community that co-founders Kyle Kazan, Chairman and CEO, and Graham Farrar, Board Member and President, instilled at the outset. Whether it be through its portfolio of brands, which includes Glass House Farms, PLUS Products, Allswell and Mama Sue Wellness or its network of retail dispensaries throughout the state of California, which includes The Farmacy, Natural Healing Center and The Pottery, Glass House is committed to realizing its vision of excellence: outstanding cannabis products, produced sustainably, for the benefit of all. For more information and company updates, visit www.glasshousebrands.com/ and https://ir.glasshousebrands.com/contact/email-alerts/.
Forward Looking Statements
This news release contains certain forward-looking information and forward-looking statements, as defined in applicable securities laws (collectively referred to herein as "forward-looking statements"). Forward-looking statements reflect current expectations or beliefs regarding future events or the Company's future performance or financial results. All statements other than statements of historical fact are forward-looking statements. Often, but not always, forward- looking statements can be identified by the use of words such as "plans", "expects", "is expected", "budget", "scheduled", "estimates", "continues", "forecasts", "projects", "predicts", "intends", "anticipates", "targets" or "believes", or variations of, or the negatives of, such words and phrases or state that certain actions, events or results "may", "could", "would", "should", "might" or "will" be taken, occur or be achieved. Forward-looking statements in this news release include, without limitation, statements regarding the Company's financial outlook or operational plans and statements related to future market conditions. All forward-looking statements, including those herein, are qualified by this cautionary statement. Although the Company believes that the expectations expressed in such statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in the statements. Accordingly, readers should not place undue reliance on forward-looking statements. There are certain factors that could cause actual results to differ materially from those in the forward-looking information, including those risks disclosed in the Company's Annual Information Form available on SEDAR+ at www.sedarplus.ca and in the Company's Form 40-F available on EDGAR at www.sec.gov. For more information on the Company, investors are encouraged to review the Company's public filings on SEDAR+ at www.sedarplus.ca. The forward-looking statements in this news release speak only as of the date of this news release or as of the date or dates specified in such statements. The Company disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, other than as required by law.
For further information, please contact:
Glass House Brands Inc.
John Brebeck, Vice President of Investor Relations
T: (562) 264-5078
E: ir@glasshousebrands.com
Mark Vendetti, Chief Financial Officer
T: (562) 264-5078
E: ir@glasshousebrands.com
Investor Relations Contact:
KCSA Strategic Communications
Phil Carlson
T: 212-896-1233
E: GlassHouse@kcsa.com
FAQ
What are the key terms of Glass House Brands' (GLASF) new $50M loan?
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When does Glass House Brands' (GLASF) new senior secured loan mature?
