Glass House Brands Secures $50 Million Senior Secured Loan

LOS ANGELES- Glass House Brands Inc., a vertically integrated cannabis company, has secured a new $50 million senior secured loan maturing on January 31, 2030. This facility replaces the previous loan set to mature in November 2026, extending the final balloon payment by an additional three years.

The loan carries a fixed interest rate of 8.58% for its term, notably lower than the rate of the prior loan. The initial two years require interest-only payments, with principal and interest 

After accounting for legal and loan fees, and settling the $41 million balance of the previous loan, the company anticipates a net cash inflow of $8.1 million. Additionally, the interest-only structure for the first two years is expected to preserve $13.1 million in cash that would have otherwise been allocated to principal payments in 2025 and 2026. ​

The loan is secured by first priority liens on the company’s Camarillo, Padaro, and Casitas greenhouse facilities, as well as other assets excluding real estate. Key covenants include maintaining a minimum liquidity of $10 million and achieving a consolidated fixed-charge coverage ratio of at least 1.25 times, tested quarterly starting December 31, 2024. ​

Kyle Kazan, Co-Founder, Chairman, and CEO of Glass House Brands, stated that the refinancing strengthens the company’s balance sheet, improves cash flow, and extends debt maturity to 2030. He also noted that securing favorable loan terms comparable to non-cannabis businesses reflects the strength of their relationship with the lender. ​