U.S. and Canadian marijuana operator TerrAscend borrowed $120 million from a syndicate of lenders to help finance earn-out 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 earn-out 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.
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