Cresco Labs secures $325 million refinancing for credit facility

Cresco Labs Inc. (CSE: CL) (OTCQX: CRLBF) (FSE: 6CQ) announced it has obtained commitments to refinance its senior secured credit facility with a new $325 million term loan.

The new facility carries a 12.5% annual interest rate and matures five years after closing. It will replace the company's existing $360 million credit facility, reducing total debt by $35 million. The refinancing includes provisions allowing prepayment of up to $125 million at a reduced prepayment premium.

The transaction is expected to close on or about August 13, 2025, subject to customary closing conditions. A.G.P. Canada Investments ULC and Cormark Securities Inc. served as lead financial advisors and lead arrangers.

Proceeds from the new facility, combined with cash on hand, will repay the existing term loan in full and fund capital expenditures and growth initiatives across Cresco's U.S. markets.

"Securing this refinancing is a testament to the strength of our business and the trust we've built with top-tier institutional lenders," said Charlie Bachtell, CEO of Cresco Labs. "We've extended our maturity, improved our balance sheet position, and done so without dilution."

The company noted that approximately $2 billion in industry debt maturities are coming due over the next 18 months across the U.S. cannabis sector, where access to capital remains constrained.

The facility contains no equity or convertible features and includes customary financial and operational covenants. The refinancing was negotiated at arm's length, according to the company's statement.

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