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Marijuana multistate operator Standard Wellness Holdings has secured a $10 million credit facility.
The 10-year term loan, which amortizes over 20 years with a 9.25% interest rate, will support the Ohio-based company’s growth and operational expansion, according to a news release.
The loan also allowed Standard Wellness to repay some higher-cost debt that carries a 13.5% interest rate and matures in the third quarter of 2026.
New York-headquartered Gramercy Capital Group served as the financial adviser for the deal, and Washington, D.C.-based Dentons US acted as legal counsel.
“This new financing partnership underscores our financial partners’ confidence in our business model and growth trajectory,” Standard Wellness CEO Jared Maloof said in a statement.
“With this facility, more than 75% of our debt now matures in 2033 or beyond, providing us with increased stability and flexibility to execute our long-term strategy.”
Besides its home state of Ohio, Standard Wellness has operations in Maryland, Missouri and Utah.
In March, the company expanded its Utah footprint by acquiring a medical marijuana dispensary in Springville for roughly $6.5 million.
Kyle Ciccarello, Standard’s vice president of finance, said the refinancing reduces the company’s “weighted average cost of debt to less than 9.75%.”
“This facility, when combined with other recent refinancings executed by the company, will deliver over $1.2 million in annual interest savings,” Ciccarello, who led the transaction, said in a statement.
These savings will enhance our financial position, enabling us to reinvest in strategic growth opportunities.”
H/T: mjbizdaily.com
You can view the whole article at this link Marijuana MSO Standard Wellness secures $10 million loan
