Canopy growth enhances financial flexibility and delivers company balance sheet by $437 million
Company announces accretive reduction of corporate debt, preservation of cash, and an improved financial position through a series of agreements supported by secured and unsecured lenders smiths falls, on , july 14, 2023 /prnewswire/ - canopy growth corporation ("canopy growth" or the "company") (tsx: weed) (nasdaq: cgc) announced today that it has entered into a series of agreements, including privately negotiated redemption agreements (the "redemption agreements") with certain holders of its unsecured senior notes due july 15, 2023 (the "existing notes") and agreements with certain of its lenders under its term loan credit agreement dated march 18, 2021 (the "credit agreement"), that will have the overall effect of deleveraging the company's balance sheet. highlights total debt reduction: ~ $437 1 million expected over the next 2 quarters annualized interest expense savings: ~ $20 – $30 million discount capture: repayment of principal owing under the credit agreement between 93% and 95% of par elimination of call premium: ability to prepay remainder of loan at par enhanced equity capitalization: conversion of ~ 41% of existing notes into common shares as a result of the agreements with our secured and unsecured lenders, the company is expected to reduce its total debt by approximately $437 million over the next 6 months and lower annual interest costs by approximately $20 to $30 million.
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