Marijuana operator TerrAscend withdraws $26 million from senior secured loan

TerrAscend Corp., a Canadian-headquartered marijuana multistate operator with U.S. assets, said it withdrew $26 million from its $140 million loan to pay off higher-interest debt it holds in Michigan.

An initial $114 million disbursement from the senior secured term loan was used in August to pay TerrAscend’s debt related to its Pennsylvania operations.

The remainder was intended for “potential M&A transactions focused on geographic expansion,” according to the company’s August news release announcing the loan from marijuana capital provider FocusGrowth Asset Management and other members of a loan syndicate.

The loan, which carries an interest rate of 12.75%, matures in August 2028.

There are no prepayment penalties, and it is guaranteed by the company and TerrAscend USA.

Ventum Capital Markets was the financial adviser to TerrAscend for the transaction.

In August, TerrAscend authorized management to repurchase $10 million of its common shares over a 12-month span – a move Executive Chair Jason Wild said demonstrates confidence in the company’s future and its commitment to shareholder value.

The company’s shares trade as TSND on the Toronto Stock Exchange.

Besides Michigan and Pennsylvania, TerrAscend has operations in California, Maryland, New Jersey and Canada.