Glass House Brands Inc., (CBOE: GLAS.A.U), (OTCQX GLASF), announced the launch of a $50 million secured senior credit facility. The new facility is intended to pay back $41 million in outstanding principal on the previous secured senior loan. The maturity date of the loan is 2030.
Loan details
The new SSL will have an interest rate of 8.58% fixed for the entire term. In the first two years, only interest is charged. In the third year, the principal and the interest are paid based upon a 15-year amortization. At maturity a $40 million balloon payment is required.
Glass House will use a first lien to secure its loan. This lien is secured on their greenhouses in Camarillo. Padaro. and Casitas. It also includes a second lien that has priority on other company assets except for real estate.
Kyle Kazan said that refinancing of the Glass House credit facility strengthened our balance sheet and improved our cashflow. It also pushed out the maturity of the senior secured debt to 2030. Glass House continues its long-standing tradition of saving costs through self-financing by directly negotiating with the lender. This loan’s favorable terms and approval from the bank are proof of Glass House’s long-standing partnership with them and of their shared goal of helping this Company continue to grow rapidly. It’s especially exciting that my company is now receiving debt that has a similar rate and term to that of non-cannabis business.”
Glass House is required to maintain at least $10,000,000 in a bank account with the lender throughout the duration of the loan.
In 2024 at the close of its third-quarter investor presentation, the company reported that it had total liabilities worth $163 millions.