Multistate marijuana operator Cresco Labs has extended the maturity of a senior secured loan and boosted the size of the debt funding to the maximum $200 million.
The Chicago-based company secured an initial $100 million loan from a syndicate of lenders in January.
The expanded loan will now mature on Jan. 23, 2023, with a lower annual interest rate of 12%, a decrease from previous rates that ranged from 12.7% to 13.2%.
Cresco said the loan would fund expansion in the nine states in which it operates and also “capitalize on other targeted growth initiatives in key markets.”
The company said the new loan agreement also includes “greater repayment optionality.”
Cresco CEO Charlie Bachtell highlighted the nondilutive nature of the funding in a news release issued Monday.
“This agreement to extend and increase the senior loan reflects the strong growth and profitability that Cresco Labs has demonstrated and the confidence our investors have in our differentiated strategy,” he said.
Cresco shares trade on the Canadian Securities Exchange as CL.