Trulieve Clears $368M Debt with Full Redemption of Senior Notes

TALLAHASSEE – Trulieve Cannabis Corp. wrapped up the buyback of its entire $368 million stack of 8% senior secured notes set to mature in 2026, handing over about $373 million in cash to cover the principal and built-up interest through early December. The move wiped the notes off the books and pulled them from trading on the Canadian Securities.

This cleanup caps a deliberate push to trim obligations that Trulieve first flagged back in November, drawing straight from a cash pile fattened by steady operations. The Florida-based and vertically integrated MSO, which runs dispensaries and cultivation sites across states like Arizona, Pennsylvania and its home turf, posted $288 million in Q3 revenue, with a 59% gross margin and $103 million in adjusted EBITDA. Year-to-date, operations churned out $214 million in cash flow, leaving room for this debt payoff without tapping credit lines or fresh equity.

Numbers like these, point to a company performing well operationally, even as the Cannabis sector grapples with patchy state rollouts and federal gridlock. Paying off the 2026 notes [issued in 2021  when borrowing costs were steeper] frees up roughly $29 million a year in interest payments, based on the 8% rate applied to the full principal. That windfall could shore up margins already holding firm above 59%, or fuel bets on expansion in Texas, where Trulieve snagged a conditional processing license last week.

Wall Street took note of the earlier redemption notice in November, with shares climbing 6.9% in the days after, reflecting bets on a cleaner balance sheet. At a market value hovering $1.19 billion, Trulieve trades at multiples that some metrics flag as a bargain against peers, given its cash generation and foothold in high-volume markets like Florida. Yet the real test comes in how this plays out against broader pressures: wholesale price dips in mature states and the drag from federal tax rules that hit operators like Trulieve with outsized bills.

On the flip side, Trulieve isn’t standing pat. It just tapped investors for $100 million in new 10.5% senior secured notes due 2030, a shorter-term bridge that keeps liquidity humming without bloating the debt load overall. This mix, slashing old high-rate debt while layering in targeted financing, signals discipline in a field where overleveraged outfits have stumbled.

From this vantage in the Cannabis beat, Trulieve’s latest ledger tweak looks like a solid block in the foundation, buying time and flexibility as markets mature unevenly. This move won’t upend the broader sector’s trajectory, but for a company already generating positive free cash flow, it’s smart balance sheet work that leaves room to maneuver against surprises from Washington.