Canopy Growth Corporation has made an optional 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 results in interest expense savings of approximately US$13 million on an annualized basis.
"Canopy has further improved its balance sheet with this early prepayment by reducing our overall debt position as well as lowering annual interest costs," said Judy Hong, CFO of Canopy Growth. "In addition, with this prepayment now made, we have no material debt obligation until September 2027."
This prepayment was optional under the terms of the agreement between the Company and its senior lenders as part of a series of amendments to the Term Loan. Pursuant to the Term Loan Amendment, Canopy Growth had the option to make this prepayment by March 31, 2025. As a result of making the Second Prepayment, the maturity date of the Term Loan has been extended to September 18, 2027.
The optional 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.
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