Out Of Pocket: Which U.S. Cannabis Company Owes The Most Money In 2024?
In a recent report, Pablo Zuanic, senior analyst at Zuanic & Associates, analyzes the debt maturities of over 20 multi-state operators (MSOs) in the cannabis industry. This comprehensive review follows Ascend Wellness’s significant $200 million debt refinancing.
Ascend Wellness Holdings (OTC: AAWH) recently issued $235 million in 5-year Senior Secured Notes at a 12.75% coupon rate. This move aimed to refinance a $215 million portion of a $275 million term loan. “Although the new notes have a higher effective interest rate (13.5%) compared to the previous loan (9.5%), Ascend managed to extend a significant maturity by four years,” Zuanic said.
Debt Commitments
The report highlights various MSOs with notable debt maturities over the next two years. Ascend faced a substantial load at 65% of its sales, with $372 million in 2-year commitments versus $570 million in annualized sales. However, the company extended the bulk of its $275 million notes to 2029, alleviating immediate pressure.
Other MSOs …