- Amendment will reduce Company debt by $35 million and annual interest expense by $5 million
- Combined with recently announced debt retirement of $125 million, Company debt will be reduced by a cumulative $160 million and will result in total annual interest savings of $15 million
TORONTO, Dec. 21, 2022 /CNW/ – TerrAscend Corp. (“TerrAscend”) (CSE: TER) (OTCQX: TRSSF), a leading North American cannabis operator, today announced that its subsidiary, WDB Holding PA, Inc., has completed an amendment (the “Amendment”) to its existing $115 million senior secured term loan in Pennsylvania (the “Loan”).
TerrAscend has taken significant measures recently to reduce its outstanding debt and interest expense, further strengthening our path to positive sustainable cash flow from operations.
Jason Wild, Executive Chairman of TerrAscend
The Company has access to multiple additional sources of funds, many of which are non-dilutive and non-interest bearing in nature, and we intend to explore all options for continued debt reduction and balance sheet optimization.
The Amendment will reduce Company debt by $35 million and annual interest expense by $5 million. Combined with recently announced debt retirement of $125 million, Company debt will be reduced by a cumulative $160 million and will result in total annual interest savings of $15 million. TerrAscend will make the $35 million payment on March 15, 2023 at the original prepayment price of 103.22% to par. The Loan matures in December 2024 and originally could not be prepaid without penalty until June 2023.
Under the terms of the Amendment, TerrAscend will adjust collateral to more appropriately balance its debt with its assets. Included in this rebalancing will be the inclusion of the Company’s Maplewood and Lodi, New Jersey dispensary assets as added collateral for the Pennsylvania Loan, upon satisfaction of certain conditions. Additionally, the Amendment now affords the Company flexibility to enter into a sale leaseback transaction or mortgage, at its discretion, on its cultivation facility in Pennsylvania, which has an estimated value of $50 million.
TerrAscend is a leading North American cannabis operator with vertically integrated operations in Pennsylvania, New Jersey, Michigan and California, licensed cultivation and processing operations in Maryland and licensed production in Canada. TerrAscend operates The Apothecarium and Gage dispensary retail locations as well as scaled cultivation, processing, and manufacturing facilities in its core markets. TerrAscend’s cultivation and manufacturing practices yield consistent, high-quality cannabis, providing industry-leading product selection to both the medical and legal adult-use markets. The Company owns several synergistic businesses and brands, including Gage Cannabis, The Apothecarium, Ilera Healthcare, Kind Tree, Prism, State Flower, Valhalla Confections, and Arise Bioscience Inc. For more information, visit www.terrascend.com.