SMITHS FALLS, Ontario, Oct. 17, 2024 – PRESS RELEASE – Canopy Growth Corp., a world-leading cannabis company dedicated to unleashing the power of cannabis to improve lives, announced that it has made an early prepayment under its senior secured 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, which, among other things, included an extension of the term loan's maturity date to Dec. 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 Sept. 18, 2027.
"This early prepayment reflects our ongoing commitment to reducing cash burn and strengthening our capital structure,” Canopy Growth Chief Financial Officer Judy Hong said. “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.
