Marijuana business financier Chicago Atlantic BDC closed a $100 million senior secured revolving credit line led by a Federal Deposit Insurance Corp.-insured financial firm.
The loan matures in March 2028 and bears a secured overnight financing rate – a standard lending rate in financial transactions – plus 3%, according to a Wednesday news release.
“With no current debt outstanding, the Credit Facility provides us with significant liquidity and the flexibility to grow the Company’s portfolio as we seek to capitalize on the robust lending opportunities in the originations pipeline,” Scott Gordon, Chicago Atlantic BDC’s executive chair and co-chief investment officer, said in a statement.
In December, the New York-headquartered company said it issued a 34-cent dividend for the quarter ending Dec. 31, an 36% increase from a 25-cent per-share dividend the previous quarter.
The specialty lender took the name Chicago Atlantic BDC in October, when Silver Spike Investment Corp. closed on a portfolio of loans from Illinois-headquartered Chicago Atlantic Loan Portfolio.
Silver Spike initially was a marijuana-focused special purpose acquisition company (SPAC) but shifted to a broadened strategy of investments outside cannabis, health and wellness.
Chicago Atlantic BDC bills itself as the only publicly traded business development company primarily focused on the U.S. cannabis industry.
The company’s shares trade as LIEN on the Nasdaq stock exchange.
