Green Thumb Industries Secures $150 Million Credit Facility to Retire Existing Debt

LOS ANGELES- Green Thumb Industries Inc. (GTI), a national cannabis consumer packaged goods company and owner of RISE Dispensaries, has closed a $150 million five-year syndicated credit facility led by Valley National Bank. The company plans to use the proceeds, along with existing cash, to retire its $225 million senior secured debt due April 30, 2025.

This financing marks a significant development in the U.S. cannabis industry, representing a first-of-its-kind bank-only financing. The notes have a maturity date of September 11, 2029, and will bear interest at the Secured Overnight Financing Rate (SOFR) plus 500 basis points, payable quarterly.

GTI’s Founder, Chairman, and CEO, Ben Kovler, stated that this new capital strengthens the company’s balance sheet and supports its growth strategy. John Meyer, Senior Vice President of Commercial Banking at Valley National Bank, emphasized the longstanding partnership with GTI and the company’s reputation as a market leader in legal cannabis.

This transaction did not involve the issuance of any Green Thumb equity to the participating banks.

As of September 30, 2024, GTI reported cash and cash equivalents totaling $173.6 million, with total debt outstanding at $255.6 million.

This strategic financial move is expected to enhance GTI’s financial flexibility and support its ongoing expansion efforts within the regulated cannabis market.