Canopy Growth Further Improves Balance Sheet with Early Prepayment to Reduce Term Loan by US$100 Million and Ensures Maturity Extension to at Least December 2026
MITHS FALLS, ON, Oct. 17, 2024 /PRNewswire/ – Canopy Growth Corporation (“Canopy Growth” or the “Company”) (TSX: WEED) (NASDAQ: CGC), a world-leading cannabis company dedicated to unleashing the power of cannabis to improve lives, announced today that it has made an early prepayment under its senior secured term loan (the “Term Loan”) in an aggregate principal amount equal to US$100 million at a discounted price of US$97.5 million. This proactive move, which in addition to reducing the Company’s leverage results in annualized interest expense savings of approximately US$14 million, underscores the Company’s strong commitment to fiscal discipline and further strengthens its financial position as it continues to execute on its strategic priorities.
As previously announced in August 2024, this prepayment was agreed to between the Company and its senior lenders as part of a series of amendments to the Term Loan (the “Term Loan Amendment”), which, among other things, included an extension of the Term Loan’s maturity date to December 18, 2026. Pursuant to the Term Loan Amendment, the Company has the option to make an additional prepayment equal to US$100 million at a discounted price of US$97.5 million by March 31, 2025 (the “Second Prepayment”). If payment of the Second Prepayment is made, the maturity date of the Term Loan will automatically further extend to September 18, 2027.
Judy Hong, CFO of Canopy Growth, commented: “This early prepayment reflects our ongoing commitment to reducing cash burn and strengthening our capital structure. Our proactive steps to reduce debt and extend maturity enhance our balance sheet flexibility to invest in growth areas and drive long-term value creation for our shareholders.”
The early prepayment of the Term Loan demonstrates Canopy Growth’s continued focus on reducing debt and improving its balance sheet, positioning the Company for sustainable growth in the evolving global cannabis market.
