Trulieve Secures $140M in Senior Notes

TALLAHASSEE – Trulieve Cannabis Corp. wrapped up a $140 million private placement of 10.5% senior secured notes, tapping into robust investor appetite to fuel its operational push. The deal, upsized from initial plans, comes just weeks after the company cleared out its entire $368 million tranche of 8% notes due in 2026, signaling a deliberate shift toward longer-term financing.

The notes, issued at full face value, carry a 10.5% annual interest rate paid out twice a year and reach maturity on December 17, 2030. Holders can call them back starting three years from now at terms outlined in the indenture. Net proceeds will go toward capital spending and everyday business needs, moves that align with Trulieve’s recent footprint growth, including its eighth Ohio dispensary opening that totaled its national count to 234 locations.

This transaction marks a calculated refinance play. By swapping shorter-dated, lower-rate debt for extended obligations at a higher coupon, Trulieve eases cash flow strains through 2026 while locking in funds for scale-up in competitive states like Florida and Pennsylvania. The 2.5%-point interest bump reflects broader fixed-income pressures in the Cannabis sector, where operators juggle federal tax drags and state-by-state regulatory challenges.

Yet Trulieve’s balance sheet stands solid. A current ratio north of 6 shows ample liquidity to cover obligations, and its shares have climbed more than 115% in the last year, hugging a 52-week peak around $10.86.

Market reception underscores confidence. The offering’s expansion amid strong demand hints at Trulieve’s appeal to yield-hungry investors, especially as the company eyes listings for the notes on the Canadian Securities Exchange following the expiry of a four-month Canadian statutory hold period. On social platforms, chatter focused on the financing’s tie-in with expansion news, with industry watchers noting it as a timely liquidity boost ahead of potential federal reforms.

For Trulieve, this step reinforces a pattern of prudent capital management in a cash-intensive industry. The extended runway buys time to harvest returns from new stores and supply efficiencies, without tipping into overleverage.
Highly Capitalized Network-HCN will closely monitor quarterly filings to gauge how these funds are deployed, and whether they accelerate market share gains or just tread water. Either way, Trulieve’s moves keep it ahead of the pack.