Curaleaf reaches new heights, in debt financing

Earlier this week MSO Curaleaf announced it had received a private placement of $425M in debt financing at an interest rate of 8%. The deal is notable for being the largest ever debt raise by a PotCo and for carrying one of the lowest interest rates in the cannabiz. (This piece explains more.)
MJBiz

• According to mainstream financial firm Stifel, interest rates were as high as 20% on debt financing in 2019. 
• And smaller companies pay more. Colorado-based operator Schwazze just inked a deal at 13%.
• The agreement, which matures in five years, also permits another $200M in senior bank financing. 
• In many cases, lower interest rates are making debt financing more attractive than equity financing. 

Big debt raises are becoming more common. Just this week:

• California-based Glass House Brands raised $100M at a variable rate set at 10% and not to exceed 12%.
• MSO Acreage Holdings received a $100M debt financing from AFC Gamma and Viridescent Realty. The press release didn’t include the interest rate.

MJBiz explains why it matters.