Fri, Aug 2, 1:07 PM (88 days ago)
TerrAscend Corp. has entered into a $140 million senior-secured term loan agreement with FG Agency Lending LLC, effective August 1, 2024. The loan includes an initial draw of $114 million and a delayed draw of $26 million, expected by September 30, 2024. The proceeds from the initial draw were used to retire existing loans, including the Ilera Term Loan and a commercial loan with Stearns Bank, while the delayed draw will retire a loan with Chicago Atlantic Admin, LLC. The loan bears an interest rate of 12.75% per annum and matures on August 1, 2028. The agreement includes negative covenants that limit additional indebtedness, creating liens, paying dividends, making investments, and other actions. The loan is guaranteed by TerrAscend Corp. and TerrAscend USA, Inc., and secured by the assets of the borrowers. Notably, funds controlled by Executive Chairman Jason Wild have invested $7.5 million in the loan.