NEW YORK – Ascend Wellness Holdings Inc., a multistate, vertically integrated cannabis operator, closed a private placement of $50 million of its 12.75% Senior Secured Notes, due 2029. The notes form part of the same series of the $250 million aggregate principal amount of the company’s 12.75% senior secured notes due 2029, of which $235 million aggregate principal amount was issued July 16, 2024, and $15 million aggregate principal amount was issued January 13, 2025. The notes were issued at a price of 97.5% of face value pursuant to and governed by a trust indenture entered into July 16, 2024, as amended and supplemented by a first supplemental indenture dated as of January 13, 2025.
The company intends to use the net proceeds, together with cash on hand, to prepay the total principal amounts outstanding under its existing term loan, along with accrued interest and other transaction-related expenses.
“This refinancing was always part of our long-term strategic plan, and we’re very pleased with the strong demand and support from our lenders,” said Sam Brill, Chief Executive Officer. “Their continued confidence in our team and plan underscores the long-term value of our business and the discipline with which we manage our operations. With a strong balance sheet, we are well-positioned to take advantage of current market conditions and execute on our densification strategy, while continuing to deliver value to all stakeholders.”
Seaport Global Securities LLC acted as lead financial advisor and sole placement agent for the notes. Foley Hoag LLP and Stikeman Elliott LLP acted as legal advisors to Ascend, and Osler, Hoskin & Harcourt LLP acted as legal advisor to the agent in connection with the transaction.
The notes are senior secured obligations and bear interest at a rate of 12.75% per annum, payable semi-annually in arrears until their maturity date, unless earlier redeemed or repurchased in accordance with their terms. At any time, the company may redeem all or a part of the notes at certain specified redemption prices, including until July 15, 2026, at par. The notes are irrevocably and unconditionally guaranteed, jointly and severally, on a senior secured basis, by certain of the company’s subsidiaries. The notes and the guarantees are secured, on a first lien basis, by substantially all assets of the company and certain of its subsidiaries, subject to certain carveouts.
The notes are subject to a customary four-month hold period under Canadian securities laws.
About Ascend Wellness Holdings Inc.
AWH is a vertically integrated operator with assets in Illinois, Maryland, Massachusetts, Michigan, New Jersey, Ohio and Pennsylvania. AWH owns and operates state-of-the-art cultivation facilities, growing award-winning strains and producing a curated selection of products for retail and wholesale customers. AWH produces and distributes its in-house Common Goods, Simply Herb, Ozone, Ozone Reserve, Effin’, and Royale branded products.
