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Marijuana multistate operator Green Thumb Industries Inc. closed a $150 million, five-year syndicated credit facility led by Valley National Bank.
According to GTI, the oversubscribed, non-brokered offering is the first bank-only financing of its kind in the regulated U.S. cannabis industry.
The Chicago-based MSO plans to use proceeds of the credit facility and existing cash to retire $225 million in senior secured debt due April 30, 2025, according to a news release.
The notes have a maturity date of Sept. 11, 2029.
“We are thrilled to successfully execute upon this syndicated loan facility for Green Thumb, a first-of-its kind bank financing for the U.S. cannabis industry,” said John Meyer, senior vice president of commercial banking at Valley, who added that the bank has a longstanding partnership with GTI.
Green Thumb Chairman and CEO Ben Kovler said in a news release: “The new capital funding further strengthens our already clean balance sheet for another five years.”
Green Thumb reported annual revenue of $1.05 billion and a gross profit of $528.05 million in February.
The company also said it remains profitable “regardless of federal reform,” such as the proposed rescheduling of marijuana from Schedule 1 to Schedule 3 of the Controlled Substances Act.
