US: Glass House Brands gets new $50M credit facility

Glass House Brands has signed a new $50 million senior-secured credit facility.

"I'm excited to share the great news that Glass House has secured a new senior secured credit facility," Kyle Kazan, Co-Founder, Chairman and Chief Executive Officer of Glass House, commented. "Refinancing the credit facility strengthens our balance sheet, significantly improves our cash flow and pushes out the maturity of our senior secured debt into 2030. By negotiating this facility directly with the lender, Glass House has continued its tradition of cutting costs by arranging our own financing. The lender's approval of the credit facility and the favorable terms of the loan are a testament to the strength of our long-standing relationship with the bank and to our shared vision of enabling this Company to continue its rapid growth. I'm particularly excited that our company has finally received debt with a rate and terms which are comparable to non-cannabis businesses."

"Additionally, I want to extend a thank you to WhiteHawk Capital Partners (WHCP) whose senior secured loan was refinanced in this transaction. WHCP extended credit to us shortly after we went public and before we planted the first greenhouses at our SoCal Facility. Their confidence in our ability to execute at a critical inflection point cannot be understated."

The interest rate for the new SSL facility will be fixed at 8.58% for the term of the loan. The first two years are interest-only. Principal and interest payments will be made during the last three years based on a straight-line amortization of the loan amount over a period of 15 years, with a balloon payment of $40 million due on the maturity date.