MRMD - MariMed Closes $58.7 Million Debt Refinancing | Benzinga
NORWOOD, Mass., Nov. 20, 2023 (GLOBE NEWSWIRE) -- MariMed Inc. ("MariMed" or the "Company") (CSE:MRMD) (OTCQX:MRMD), a leading multi-state cannabis operator focused on improving lives every day, announced that it closed a $58.7 million secured credit facility with a U.S. chartered bank on November 17, 2023.
"I am delighted to announce the closing of this debt refinancing, which will generate significant cash savings," said Jon Levine, MariMed's Chief Executive Officer. "Securing a lower rate, when interest rates continue to rise, is the result of the financial discipline we have displayed over the past decade. Importantly, we are pleased there is no warrant or other equity component resulting in dilution to our shareholders."
Levine continued, "By paying off the Chicago Atlantic loan, we were also able to unencumber our operating assets in Illinois, Ohio, and Delaware, as well as our branded products, providing additional levers for future term loans at attractive rates if we choose. Additionally, the credit facility bolsters our ability to continue executing our strategic plan, particularly as it relates to growing the Company through mergers and acquisitions. There are many attractive opportunities for accretive deals to be made in our industry, and we intend to explore any that will increase shareholder value."
Highlights of the refinancing deal include:
- A 10-year, $58.7 million Construction to Permanent Commercial Real Estate Mortgage ("CREM") loan.
- Interest at a lower fixed rate. After the first five years, the rate will be reset for the remaining 5 years.
- Interest only payments for the first 12 months. After the first 12 months, payments will be based on a 20-year amortization schedule.
- The loan is secured solely ...