Provides additional balance sheet flexibility for growth investments in our key markets
SMITHS FALLS, ON, March 18, 2021 / PRNewswire / – Canopy Growth Corporation (“Canopy Growth” or “Canopy” or the “Company”) (TSX: WEED) (NASDAQ: CGC) is pleased to announce that it has entered into a credit agreement (the ” credit ”)) with funds advised by King Street Capital Management, LP (“ King Street ”). Under the terms of the credit agreement, the company raised a 750 million US dollars senior secured term loan (the “Term Loan Facility”). The Company also has the ability to obtain up to a supplement US $ 500 million additional senior secured debt in accordance with the credit agreement.
“We are delighted to welcome King Street as our primary debt investor and look forward to creating value for our credit and equity investors over time,” said Mike lee, Executive Vice President and Chief Financial Officer of Canopy Growth. “This transaction further strengthens Canopy’s balance sheet, provides additional capital to invest in high yielding growth opportunities and marks a key milestone for us as we strive to achieve a more efficient capital structure.”
“We have been impressed with Canopy’s growth as a leader in the Canadian market and look forward to providing this strategic capital as Canopy expands its business,” said Noah charney, Managing Director of King Street.
The term loan facility has no amortization payments and matures on March 18, 2026. The gross proceeds, net of fees and expenses, will be used by Canopy Growth for working capital and general corporate purposes, including, but not limited to, growth investments, acquisitions, corporate expenses. capital and strategic initiatives. The term loan facility has a LIBOR coupon plus 8.50% and is subject to a LIBOR floor of 1.00%. Taking into account the net proceeds of the term loan facility, the Company’s estimated pro forma cash flow, cash equivalents and the position of short-term investments at the December 31, 2020 would have been approximately C $ 2.5 billion.
Greenhill & Co. acted as financial advisor to Canopy Growth. Cassels Brock & Blackwell LLP acted as Canadian legal counsel to Canopy Growth, and Paul, Weiss, Rifkind, Wharton & Garrison LLP acted as US legal counsel to Canopy Growth. Goodmans LLP acted as Canadian legal counsel and Davis polk & Wardwell LLP acted as US legal counsel to King Street.
About Canopy Growth
Canopy Growth (TSX: WEED, NASDAQ: CGC) is a leading diversified cannabis and cannabinoid consumer products company in the world with a passion to improve lives, end prohibition and strengthening communities by unleashing the full potential of cannabis. Leveraging consumer insight and innovation, we offer high quality product varieties in dried flower, oil, softgel, infused, edible and topical beverage formats, as well as vaporizers from Canopy. Growth and industry leader Storz & Bickel. Our global medical brand, Spectrum Therapeutics, sells a line of full spectrum products using its color coded classification system and is a market leader in Canada and Germany. Through our award-winning Tweed and Tokyo Smoke banners, we are reaching our adult consumers and building customer loyalty by focusing on superior products and meaningful customer relationships. Canopy Growth entered the consumer health and wellness business in key markets including Canada, United Statesand Europe through BioSteel sports nutrition and This Works skin and sleep solutions; and introduced other federally licensed CBD products in the United States through our First & Free and Martha Stewart CBD brands. Canopy Growth has partnered with Fortune 500 liquor leader Constellation Brands. For more information, visit www.canopygrowth.com.
About King Street
King Street is a $ 18 billion global investment management company founded in 1995 with offices in new York, London, Singapore, Tokyo and Charlottesville, Virginia. King Street uses a fundamental research-intensive approach across multiple strategies, markets, industries and asset classes, including an expanding lending platform.
Notice Regarding Forward-Looking Statements
This press release contains “forward-looking statements” and “forward-looking information” within the meaning of applicable US and Canadian securities laws (collectively, “forward-looking statements”), which involve certain known and unknown risks and uncertainties. Forward-looking statements predict or describe our future operations, business plans, business and investment strategies and performance of our investments. These forward-looking statements are generally identified by the use of terms and expressions such as “intention”, “objective”, “strategy”, “estimate”, “expect”, “project”, “projections”, “forecasts”. “, Predicts,” “seeks”, “anticipates”, “potential”, “proposed”, “will,” “should” “could”, “would,” “may”, “likely”, “designed for”, ” foreseeable future, “” believe “,” planned “and the like. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date on which the statement was made. are necessarily based on a number of estimates and assumptions which, although considered reasonable by management, are inherently subject to significant business, economic and competitive risks, to financial results, results, performance or achievements expressed or implied by these forward-looking statements. forward-looking statements and statements are not guarantees of future performance. Therefore, there are or will be significant factors that could cause actual results or results to differ materially from those shown in such statements. A discussion of some of the important factors applicable to the Company can be found in the section entitled “Risk Factors” of the Company’s Annual Report on Form 10-K for the fiscal year ended March 31, 2020, filed with the Securities and Exchange. Commission and with the relevant Canadian securities regulators, as these factors may be updated from time to time in its periodic filings with the Securities and Exchange Commission and with the relevant Canadian securities regulators, available at www .sec.gov / edgar and www.sedar .com, respectively. These factors should not be construed as exhaustive and should be read in conjunction with the other caveats included in this press release and in the filings. Any forward-looking statement included in this press release is made as of the date of this press release and, except as required by law, the Company disclaims any obligation to update or revise any forward-looking statement. Readers are cautioned not to place undue reliance on any forward-looking statement. The forward-looking statements contained in this press release are expressly qualified by this cautionary statement.
SOURCE Canopy Growth Corporation