Debra BorchardtGlass House Brands Inc. (CBOE CA: GLAS.A.U) (OTCQX: GLASF) announced a new $50 million senior secured credit facility with the goal of paying back the $41 million outstanding on its previous senior secured loan plus fees and for working capital and general corporate purposes. The loan maturity is set for 2030.
Loan details
The interest rate for the new SSL facility will be fixed at 8.58% for the term of the loan. The first two years are interest-only. The company said that principal and interest payments will be made during the last three years based on a straight-line amortization of the loan amount over a period of 15 years, with a balloon payment of $40 million due on the maturity date.
The loan will be secured by a first-priority lien on Glass House’s Camarillo, Padaro and Casitas greenhouse farms and facilities and a first-priority lien on the rest of the company’s assets excluding other real estate.
Kyle Kazan, Co-Founder, Chairman and Chief Executive Officer of Glass House said, “Refinancing the credit facility strengthens our balance sheet, significantly improves our cash flow and pushes out the maturity of our senior secured debt into 2030. By negotiating this facility directly with the lender, Glass House has continued its tradition of cutting costs by arranging our own financing. The lender’s approval of the credit facility and the favorable terms of the loan are a testament to the strength of our long-standing relationship with the bank and to our shared vision of enabling this Company to continue its rapid growth. I’m particularly excited that our company has finally received debt with a rate and terms that are comparable to non-cannabis businesses.”
Glass House must maintain a minimum liquidity of $10 million to be held in an account at the lending institution throughout the term of the loan.
In its last investor presentation at the end of the third quarter in 2024, the company noted that its total liabilities were $163 million.
