Curaleaf Holdings has closed a $500 million private debt financing, refinancing existing obligations and extending its debt maturity by more than two years.
The company issued senior secured notes carrying an 11.5% interest rate, due in February 2029. At the same time, Curaleaf redeemed its previously outstanding $475 million in senior secured notes that were set to mature in December 2026. According to the company, the transaction is non dilutive and was completed at full face value.
The refinancing effectively pushes Curaleaf's near term debt obligations further down the road, giving the company additional runway as it continues to operate across multiple international cannabis markets. Net proceeds from the offering will be used to support global growth initiatives, as well as to cover transaction related costs.
© Curaleaf
"This financing strengthens our balance sheet and gives us more flexibility to execute on our long term strategy," said Boris Jordan, chairman and CEO of Curaleaf. He described the deal as the largest bond offering completed in the cannabis sector to date, and pointed to renewed institutional investor interest as a sign of increasing confidence in the industry.
The notes pay interest semi annually and are secured against company assets. The financing structure also leaves room for additional debt issuances under certain leverage conditions, alongside up to $100 million in senior bank financing.
The private placement was conducted in both Canada and the United States under existing securities law exemptions, and was led by Seaport Global Securities, with ATB Cormark Capital Markets acting as co placement agent.
For more information:
Curaleaf
[email protected]
curaleaf.com
