Canopy Growth agrees on $750 term loan with King Street

The U.S.-listed shares of Canopy Growth Corp.
CGC,
+3.97%
WEED,
+3.82%
edged up 0.5% in premarket trading Thursday, after the Canada-based cannabis company announced an agreement on a $750 million senior secured term loan with funds advised by King Street Capital Management L.P. The term loan, which matures on March 18, 2026, has a coupon of LIBOR plus 8.5% and has no amortization payments. The agreement also allows the company to receive up to an additional $500 million of senior secured debt. The company plans to use the proceeds for working capital and general corporate purposes, which could include growth investments, acquisitions and strategic initiatives. “We are delighted to welcome King Street as our anchor debt investor and look forward to building value for both our credit and equity investors over time,” said Canopy Chief Financial Officer Mike Lee. The stock has rallied 35.0% over the past three months through Wednesday, while the Cannabis ETF
THCX,
+0.88%
has climbed 69.1% and the S&P 500
SPX,
+0.29%
has gained 7.1%.