Jushi Holdings, a vertically integrated, marijuana multistate operator, refinanced a roughly $53 million senior secured credit facility.
According to a news release from the Boca Raton, Florida-based company, the refinancing was accomplished through:
- The issuance of a new $48.5 million senior secured “term loan.”
- The use of approximately $7.4 million from cash on hand, which includes fees associated with the refinancing.
The $48.5 million loan bears an annual interest rate of 12.25%, payable quarterly, the release notes.
The loan matures on the earlier of 30 months from the closing date or 91 days before the maturity of Jushi’s existing “second lien notes” due Dec. 7, 2026.
Investors providing the loan to Jushi received five-year warrants at 40% coverage and with an exercise price per share equal to $1.
After issuance of the loan and the repayment of the existing first lien notes, Jushi will have roughly $19 million of cash, cash equivalents and restricted cash as of July 31, 2024, according to the release.
The release noted that “an entity affiliated with” Jushi’s CEO, co-founder and board chair, James Cacioppo, participated in the loan with a principal amount of $9 million, receiving 3.6 million warrants.
Denis Arsenault, a “significant equity holder” in Jushi, also participated in the loan with a principal amount of $7 million, receiving 2.8 million warrants.
Cacioppo and Arsenault were cleared to participate in the loan because neither of their stakes in Jushi exceeded 25%, the release noted.
ATB Capital Markets acted as financial adviser for the refinancing.
