Green Thumb Industries Refinances its Senior Debt Via Syndicated Credit Facility
Green Thumb Industries (GTBIF) has successfully closed a $150 million 5-year syndicated credit facility led by Valley National Bank. This groundbreaking financing, a first-of-its-kind bank-only offering in the U.S. cannabis industry, carries an interest rate of SOFR +5.00%. The company plans to use the proceeds, along with existing cash, to retire its $225 million senior secured debt due April 30, 2025. This refinancing strengthens Green Thumb's balance sheet for the next five years, allowing the company to focus on brand building and expansion in the growing cannabis market. The transaction did not involve the issuance of any Green Thumb equity to the participating banks.
Green Thumb Industries (GTBIF) ha chiuso con successo un prestito sindacato di 150 milioni di dollari della durata di 5 anni, guidato dalla Valley National Bank. Questo finanziamento rivoluzionario, il primo del suo genere solo bancario nell'industria della cannabis negli Stati Uniti, ha un tasso di interesse di SOFR +5.00%. L'azienda prevede di utilizzare i proventi, insieme al denaro esistente, per estinguere il suo debito senior garantito di 225 milioni di dollari in scadenza il 30 aprile 2025. Questo rifinanziamento rafforza il bilancio di Green Thumb per i prossimi cinque anni, permettendo all'azienda di concentrarsi sulla costruzione del marchio e sull'espansione nel mercato in crescita della cannabis. La transazione non ha comportato l'emissione di alcuna azione di Green Thumb alle banche partecipanti.
Green Thumb Industries (GTBIF) ha cerrado con éxito un facilidad de crédito sindicada de 150 millones de dólares a 5 años, liderada por Valley National Bank. Este financiamiento revolucionario, el primero de su tipo solo bancario en la industria del cannabis en EE. UU., tiene una tasa de interés de SOFR +5.00%. La compañía planea usar los ingresos, junto con el efectivo existente, para pagar su deuda senior garantizada de 225 millones de dólares que vence el 30 de abril de 2025. Este refinanciamiento fortalece el balance de Green Thumb durante los próximos cinco años, permitiendo a la empresa enfocarse en la construcción de su marca y en la expansión en el creciente mercado de cannabis. La transacción no implicó la emisión de acciones de Green Thumb a los bancos participantes.
그린 Thumb Industries (GTBIF)는 Valley National Bank가 주도하는 1억 5천만 달러의 5년 만기 신디케이트 신용 시설을 성공적으로 마감했습니다. 이 획기적인 자금 조달은 미국 대마초 산업에서 유일한 은행 전용 상품으로, SOFR +5.00%의 이자율을 적용받습니다. 회사는 수익금과 기존 자금을 활용하여 2025년 4월 30일 만기인 2억 2천5백만 달러의 선순위 담보 부채를 상환할 계획입니다. 이번 재융자는 그린 Thumb의 재무 상태를 향상시켜 향후 5년 동안 대마초 시장에서 브랜드 구축과 확장에 집중할 수 있게 합니다. 이번 거래는 참여 은행에 그린 Thumb의 주식을 발행하지 않았습니다.
Green Thumb Industries (GTBIF) a réussi à finaliser une facilité de crédit syndiqué de 150 millions de dollars sur 5 ans, dirigée par la Valley National Bank. Ce financement innovant, le premier de son genre uniquement bancaire dans l'industrie du cannabis aux États-Unis, a un taux d'intérêt de SOFR +5.00%. L'entreprise prévoit d'utiliser les produits, ainsi que sa trésorerie existante, pour rembourser sa dette senior sécurisée de 225 millions de dollars échue le 30 avril 2025. Ce refinancement renforce le bilan de Green Thumb pour les cinq prochaines années, permettant à l'entreprise de se concentrer sur le développement de sa marque et l'expansion dans le marché en pleine croissance du cannabis. La transaction n'a pas impliqué l'émission d'actions de Green Thumb aux banques participantes.
Green Thumb Industries (GTBIF) hat erfolgreich eine 150 Millionen Dollar schweren 5-jährigen syndizierten Kreditlinie abgeschlossen, die von der Valley National Bank geleitet wurde. Diese bahnbrechende Finanzierung, die erste ihrer Art ausschließlich für Banken in der US-Cannabisindustrie, hat einen Zinssatz von SOFR +5.00%. Das Unternehmen plant, die Erlöse zusammen mit vorhandenen Mitteln zu verwenden, um seine 225 Millionen Dollar hochrangige besicherte Schuld, die am 30. April 2025 fällig wird, zu tilgen. Diese Refinanzierung stärkt die Bilanz von Green Thumb für die nächsten fünf Jahre und ermöglicht es dem Unternehmen, sich auf den Markenaufbau und die Expansion im wachsenden Cannabis-Markt zu konzentrieren. Bei der Transaktion wurden keine Aktien von Green Thumb an die teilnehmenden Banken ausgegeben.
- Secured a $150 million 5-year credit facility at a competitive rate of SOFR +5.00%
- First-of-its-kind bank-only financing in the U.S. cannabis industry
- Strengthens balance sheet by extending debt maturity to September 11, 2029
- No equity issuance involved in the transaction, avoiding shareholder dilution
- Total debt remains high, with $225 million senior secured debt being refinanced
- 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 (GLOBE NEWSWIRE) -- Green Thumb Industries Inc. (“Green Thumb” or the “Company”) (CSE: GTII) (OTCQX: GTBIF), a leading national cannabis consumer packaged goods company and owner of RISE Dispensaries, today announced it has closed on a
“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’s focus on cash generation and disciplined capital allocation led us to this pivotal point,” said Founder, Chairman and Chief Executive Officer Ben Kovler. “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, added, “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 September 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.
About Green Thumb Industries
Green Thumb Industries Inc. (“Green Thumb”), a national cannabis consumer packaged goods company and retailer, promotes well-being through the power of cannabis while giving back to the communities in which it serves. Green Thumb manufactures and distributes a portfolio of branded cannabis products including &Shine, Beboe, Dogwalkers, Doctor Solomon’s, Good Green, incredibles and RYTHM. The company also owns and operates rapidly growing national retail cannabis stores called RISE. Headquartered in Chicago, Illinois, Green Thumb has 20 manufacturing facilities, 98 open retail locations and operations across 14 U.S. markets. Established in 2014, Green Thumb employs approximately 4,700 people and serves millions of patients and customers each year. More information is available at www.gtigrows.com.
Cautionary Note Regarding Forward-Looking Information
This press release contains statements that we believe are, or may be considered to be, “forward-looking statements.” All statements other than statements of historical fact included in this document regarding the prospects of our industry or our prospects, plans, financial position or business strategy may constitute forward-looking statements. In addition, forward-looking statements generally can be identified by the use of forward-looking words such as “may,” “will,” “expect,” “intend,” “estimate,” “foresee,” “opportunity,” “project,” “potential,” “risk,” “anticipate,” “believe,” “plan,” “forecast,” “continue,” “suggests” or “could” or the negative of these terms or variations of them or similar terms or expressions of similar meaning. Furthermore, forward-looking statements may be included in various filings that we make with the Securities and Exchange Commission (the “SEC”), or oral statements made by or with the approval of one of our authorized executive officers. Although we believe that the expectations reflected in these forward-looking statements are reasonable, we cannot assure you that these expectations will prove to be correct. These forward-looking statements are subject to certain known and unknown risks and uncertainties, as well as assumptions that could cause actual results to differ materially from those reflected in these forward-looking statements. These known and unknown risks include, without limitation: cannabis remains illegal under U.S. federal law, and enforcement of cannabis laws could change; the Company may be subject to action by the U.S. federal government; state regulation of cannabis is uncertain; the Company may not be able to obtain or maintain necessary permits and authorizations; the Company may be subject to heightened scrutiny by Canadian regulatory authorities; the Company may face limitations on ownership of cannabis licenses; the Company may become subject to U.S. Food and Drug Administration or the U.S. Bureau of Alcohol, Tobacco, Firearms, and Explosives regulation; cannabis businesses are subject to applicable anti-money laundering laws and regulations and have restricted access to banking and other financial services; the Company may face difficulties acquiring additional financing; the Company faces intense competition; the Company faces competition from unregulated products; the Company is dependent upon the popularity and consumer acceptance of its brand portfolio; the Company lacks access to U.S. bankruptcy protections; the Company operates in a highly regulated sector and may not always succeed in complying fully with applicable regulatory requirements in all jurisdictions where it carries on business; the Company has limited trademark protections; the Company may face difficulties in enforcing its contracts; cannabis businesses are subject to unfavorable tax treatment; cannabis businesses may be subject to civil asset forfeiture; the Company is subject to proceeds of crime statutes; the Company faces exposure to fraudulent or illegal activity; the Company’s use of joint ventures may expose it to risks associated with jointly owned investments; the Company faces risks due to industry immaturity or limited comparable, competitive or established industry best practices; the Company faces risks related to its products; the Company’s business is subject to the risks inherent in agricultural operations; the Company faces risks related to its information technology systems and potential cyber-attacks and security breaches; the Company relies on third-party software providers for numerous capabilities we depend upon to operate, and a disruption of one or more of these systems could adversely affect our business; the Company faces an inherent risk of product liability or similar claims; the Company’s products may be subject to product recalls; the Company may face unfavorable publicity or consumer perception; the Company’s voting control is concentrated; the Company’s capital structure and voting control may cause unpredictability; and issuances of substantial amounts of the Super Voting Shares, Multiple Voting Shares, Subordinate Voting Shares may result in dilution. Further information on these and other potential factors that could affect the Company’s business and financial condition and the results of operations are included in the “Risk Factors” section of the Company’s Annual Report on Form 10-K for the year ended December 31, 2023, and elsewhere in the Company’s filings with the SEC, which are available on the SEC’s website or at https://investors.gtigrows.com. Readers are cautioned not to place undue reliance on any forward-looking statements contained in this document, which reflect management’s opinions only as of the date hereof. Except as required by law, we undertake no obligation to revise or publicly release the results of any revision to any forward-looking statements. You are advised, however, to consult any additional disclosures we make in our reports to the SEC. All subsequent written and oral forward-looking statements attributable to us or persons acting on our behalf are expressly qualified in their entirety by the cautionary statements contained in this document.
The Canadian Securities Exchange does not accept responsibility for the adequacy or accuracy of this release.
Investor Contact:
Andy Grossman
EVP, Capital Markets & Investor Relations
InvestorRelations@gtigrows.com
310-622-8257
Media Contact:
GTI Communications
media@gtigrows.com
This press release was published by a CLEAR® Verified individual.
FAQ
What is the interest rate on Green Thumb Industries' (GTBIF) new credit facility?
How much is Green Thumb Industries' (GTBIF) new credit facility worth and what is its duration?
What will Green Thumb Industries (GTBIF) use the proceeds from the new credit facility for?
Who led the syndicated credit facility for Green Thumb Industries (GTBIF)?
