Zenabis Global Inc. ZBISF, +7.02% ZENA, +20.00% said Friday it has entered a revolving credit agreement with a Canadian private debt fund for up to C$60 million ($47 million) that it will use to refinance more expensive debt held by Sundial Growers Inc. SNDL, -2.45%. The credit facility carries an interest rate per annum of the greater of 10% or the Toronto-Dominion Bank’s prime rate, from time to time, plus 7.55% calculated daily and payable monthly. The debt held by Sundial has an interest rate of 14% per annum. “This committed revolving credit facility will enable the Company to substantially reduce its cost of capital while providing increased liquidity with which to finance Zenabis’ continuing revenue growth and increase its operating flexibility,” Chief Executive Shai Altman said in a statement. In December, Sundial closed the acquisition of a special purpose vehicle for C$58.9 million in cash. The special purpose vehicle owns C$58.9 million of senior secured debt issued by Zenabis Investment Ltd, a unit of Zenabis Global. Zenabis’ U.S.-listed shares were not active premarket. Sundial was down 3%.
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