U.S. and Canadian marijuana operator TerrAscend borrowed $120 million from a syndicate of lenders to help finance earnout payments related to its acquisition of Ilera Healthcare in Pennsylvania.
The financing, announced Dec. 18, is senior secured debt that bears an annual interest rate of 12.875% and matures in four years.
The loan may be called at any time and includes an option for an additional $30 million in funding.
The lending syndicate was led by Seaport Global Securities and supported by ATB Global, according to a TerrAscend news release, and included a $25 million contribution from CapStone Holdings.
TerrAscend, which has offices in New York and Toronto, announced the Ilera acquisition, worth up to $225 million, in August 2019.
“Due to the strong performance of the business, the sellers are entitled to the maximum earnout payment, of which $135 million remains,” TerrAscend said in its release.
The company reported net sales of 51 million Canadian dollars ($39.7 million) for its latest quarter, with a net loss of CA$17.8 million.
Shares of TerrAscend trade on the Canadian Securities Exchange under the ticker symbol TER.