Cannabis lender Chicago Atlantic extends credit facility by one year

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Cannabis real estate financing company Chicago Atlantic Real Estate Finance extended its $92.5 million secured revolving credit facility by an additional year.

The revolving loan to Chicago Atlantic’s financing subsidiary Chicago Atlantic Lincoln will now mature in December 2024 with a one-year extension option, the parent company said in a Tuesday news release.

The credit facility from “six FDIC-insured financial institutions” carries an interest rate of prime plus a variable margin calculated on Chicago Atlantic Lincoln’s leverage ratio, with prime set at no less than 3.25%.

“Based on Chicago Atlantic’s current leverage, the pricing is equal to the prime rate,” the company noted.

Chicago Atlantic has increased the size of the revolving credit facility several times, to $45 million in December 2021 and to $65 million in May 2022.

The Illinois company boosted the loan to $92.5 million in November 2022.

“We are pleased to work with our lending group to complete an extension of our maturity to December 2024 and look forward to continuing our efforts to expand both the size of this facility and the lending group,” Chicago Atlantic Executive Chair John Mazarakis said in a statement.

Shares of Chicago Atlantic trade as REFI on the Nasdaq exchange.