Ascend Wellness Secures $50 Million Through Private Placement of Senior Secured Notes

LOS ANGELES- Ascend Wellness Holdings, Inc. a multi-state, vertically integrated cannabis operator, has completed a $50 million private placement of its 12.75% senior secured notes due 2029.

The notes, issued at 97.5% of face value, are part of the same series as the company’s previous issuances totaling $250 million in aggregate principal amount. With this latest issuance, the total aggregate principal amount of the company’s 12.75% senior secured notes due 2029 reaches $300 million.

Ascend plans to utilize the net proceeds, along with existing cash on hand, to prepay the outstanding principal under its existing term loan, including accrued interest and related transaction expenses.

Seaport Global Securities LLC acted as the lead financial advisor and sole placement agent for the offering. Legal counsel was provided by Foley Hoag LLP and Stikeman Elliott LLP for Ascend, and Osler, Hoskin & Harcourt LLP for the placement agent.

The notes bear interest at a rate of 12.75% per annum, payable semi-annually, and are secured by substantially all assets of Ascend and certain of its subsidiaries. They are subject to a customary four-month hold period under Canadian securities laws.

Ascend Wellness Holdings operates across several U.S. states, including Illinois, Maryland, Massachusetts, Michigan, New Jersey, Ohio, and Pennsylvania, with a focus on cultivation, manufacturing, and distribution of cannabis products.