On Mar. 18, Canopy Growth Corporation entered into a credit agreement with, among others, funds advised by King Street Capital Management, L.P. as the anchor lender, providing for a senior secured term loan facility in the aggregate principal amount of US$750 million. Canopy Growth also has the ability to obtain up to an additional US$500 million pursuant to the credit agreement at some point in the future, if needed.
The term loan facility has no amortization payments and matures on Mar. 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. At the borrower’s option, loans issued under the credit facility will initially bear interest at a rate of LIBOR (subject to a 1 per cent floor) plus a margin equal to 8.5 per cent per annum or an alternate base rate (subject to a 2 per cent floor) plus a margin equal to 7.5 per cent per annum, subject to agreed step-ups upon certain de-listing events or failure to obtain credit ratings within 180 days of closing.
Cassels Brock & Blackwell LLP acted as Canadian counsel for Canopy Growth with a deal team led by
Chuck Rich (banking and specialty finance and cannabis),
Jonathan Sherman (banking and cannabis),
and which included
Tristan Davis (banking and specialty finance and cannabis),
Lucas Blair (real estate and development and cannabis),
Corinne Grigoriu (tax and cannabis),
Marco Ciarlariello (intellectual property and cannabis).
Paul, Weiss, Rifkind, Wharton & Garrison LLP acted as U.S. counsel to Canopy Growth with a deal team composed of
Goodmans LLP acted as Canadian counsel to King Street with a deal team that included
Davis Polk & Wardwell LLP acted as U.S. counsel to King Street with a deal team composed of