Provides further balance sheet flexibility for
growth investments in our core markets
SMITHS FALLS, ON, March 18, 2021 /PRNewswire/ - Canopy Growth
Corporation ("Canopy Growth" or "Canopy" or the "Company") (TSX:
WEED) (NASDAQ: CGC) is pleased to announce that it has entered into
a credit agreement (the "Credit Agreement") with Funds
advised by King Street Capital Management, L.P. ("King Street").
Under the Credit Agreement, the Company has raised a US$750 million senior secured term loan (the
"Term Loan Facility"). The Company also has the ability to obtain
up to an additional US$500 million of
incremental senior secured debt pursuant to the Credit
Agreement.
"We are delighted to welcome King Street as our anchor debt
investor and look forward to building value for both our credit and
equity investors over time," said Mike
Lee, EVP and CFO of Canopy Growth. "This transaction further
strengthens Canopy's balance sheet, provides additional capital to
invest in high-return growth opportunities, and marks a key
milestone for us as we work towards achieving a more efficient
capital structure".
"We have been impressed with the growth of Canopy as a leader in
the Canadian market and look forward to providing this strategic
capital as Canopy further expands its business," said Noah Charney, Managing Director at King
Street.
The Term Loan Facility has no amortization payments and matures
on March 18, 2026. The gross
proceeds, net of fees and expenses, will be used by Canopy Growth
for working capital and general corporate purposes, including
without limitation, growth investments, acquisitions, capital
expenditures, and strategic initiatives. The Term Loan Facility has
a coupon of LIBOR plus 8.50% and is subject to a LIBOR floor of
1.00%. Giving effect to the net proceeds from the Term Loan
Facility, the Company's estimated pro forma cash, cash equivalents
and short-term investments position as at December 31, 2020 would have been approximately
CAD$2.5 billion.
Greenhill & Co. acted as financial advisor to Canopy Growth.
Cassels Brock & Blackwell LLP
acted as Canadian counsel to Canopy Growth, and Paul, Weiss,
Rifkind, Wharton & Garrison LLP acted as US counsel to Canopy
Growth. Goodmans LLP acted as Canadian counsel and Davis Polk & Wardwell LLP acted as US
counsel to King Street.
About Canopy Growth
Canopy Growth (TSX:WEED, NASDAQ:CGC) is a world-leading
diversified cannabis and cannabinoid-based consumer product
company, driven by a passion to improve lives, end prohibition, and
strengthen communities by unleashing the full potential of
cannabis. Leveraging consumer insights and innovation, we offer
product varieties in high quality dried flower, oil, softgel
capsule, infused beverage, edible, and topical formats, as well as
vaporizer devices by Canopy Growth and industry-leader Storz &
Bickel. Our global medical brand, Spectrum Therapeutics, sells a
range of full-spectrum products using its colour-coded
classification system and is a market leader in
both Canada and Germany. Through our award-winning
Tweed and Tokyo Smoke banners, we reach our adult-use consumers and
have built a loyal following by focusing on top quality products
and meaningful customer relationships. Canopy Growth has entered
into the health and wellness consumer space in key markets
including Canada, the United
States, and Europe through BioSteel sports
nutrition, and This Works skin and sleep solutions; and has
introduced additional federally-permissible CBD products
to the United States through our First & Free and
Martha Stewart CBD brands. Canopy Growth has an established
partnership with Fortune 500 alcohol leader Constellation Brands.
For more information visit www.canopygrowth.com.
About King Street
King Street is an $18 billion
global investment management firm founded in 1995 with offices in
New York, London, Singapore, Tokyo and Charlottesville, VA. King Street employs a
fundamental, research-intensive approach across multiple
strategies, markets, industries and asset classes including an
expanding lending platform.
Notice Regarding Forward Looking Statements
This press release contains "forward-looking statements" and
"forward-looking information" within the meaning of applicable U.S.
and Canadian securities laws (collectively, "forward-looking
statements"), which involve certain known and unknown risks and
uncertainties. Forward-looking statements predict or describe our
future operations, business plans, business and investment
strategies and the performance of our investments. These
forward-looking statements are generally identified by their use of
such terms and phrases as "intend," "goal," "strategy," "estimate,"
"expect," "project," "projections," "forecasts," "plans," "seeks,"
"anticipates," "potential," "proposed," "will," "should," "could,"
"would," "may," "likely," "designed to," "foreseeable future,"
"believe," "scheduled" and other similar expressions. You are
cautioned not to place undue reliance on these forward-looking
statements, which speak only as of the date the statement was made.
Forward–looking statements are necessarily based upon a number of
estimates and assumptions that, while considered reasonable by
management, are inherently subject to significant business,
economic and competitive risks, financial results, results,
performance or achievements expressed or implied by those
forward–looking statements and the forward-looking statements are
not guarantees of future performance. Accordingly, there are or
will be important factors that could cause actual outcomes or
results to differ materially from those indicated in these
statements. A discussion of some of the material factors applicable
to the Company can be found under the section entitled "Risk
Factors" in the Company's Annual Report on Form 10-K for the year
ended March 31, 2020, filed with the Securities and Exchange
Commission and with applicable Canadian securities regulators, as
such factors may be further updated from time to time in its
periodic filings with the Securities and Exchange Commission and
with applicable Canadian securities regulators, which can be
accessed at www.sec.gov/edgar and www.sedar.com,
respectively. These factors should not be construed as exhaustive
and should be read in conjunction with the other cautionary
statements that are included in this press release and in the
filings. Any forward–looking statement included in this press
release is made as of the date of this press release and, except as
required by law, the Company disclaims any obligation to update or
revise any forward-looking statement. Readers are cautioned not to
put undue reliance on any forward-looking statement.
Forward-looking statements contained in this press release are
expressly qualified by this cautionary statement
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SOURCE Canopy Growth Corporation