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ATB Financial, Bank of Montreal Provide Up To $140MM to Sundial Growers

September 03, 2019, 08:00 AM
Filed Under: Cannabis

Sundial Growers Inc. announced that it has entered into a syndicated credit agreement with ATB Financial ("ATB") and Bank of Montreal ("BMO") as co-lead arrangers and joint bookrunners (collectively the "Lenders") with ATB as administrative agent and BMO as syndication agent. Under the terms of the Credit Agreement, the Lenders will provide Sundial with an initial C$90 million of secured debt facilities (collectively, the "Credit Facility"), comprised of a C$84 million senior secured term credit facility and a C$6 million senior secured revolving operating facility. Under the Credit Agreement, Sundial also has the right to an additional facility to a maximum of C$50 million (for a total of C$140 million) to finance the construction of additional buildings at its Canadian production facilities, subject to the consent of the Lenders and satisfaction of certain other conditions.

Upon closing of the Credit Agreement, approximately C$48 million of the Credit Facility was drawn to refinance amounts owing under the Company's prior debt facility with ATB. The term of the Credit Facility is two years. The Credit Facility is secured by all of Sundial's Canadian assets, including its production facilities comprised of the flagship production facility located in Olds, Alberta, the Rocky View, Alberta facility and the purpose-built facility currently being constructed in Merritt, British Columbia. 

"With the completion of the Credit Facility, including the C$50 million accordion feature, and the proceeds from our recent IPO, we are well capitalized to execute our business plan in both Canada and the UK/Europe. This is a significant step for our business and will allow Sundial to focus on what we do best which is to proudly craft pioneering cannabis brands to Heal, Help and Play," said Torsten Kuenzlen, Chief Executive Officer of Sundial.

"The ongoing commitment made by our partners, both of which are leading financial institutions in Canada, demonstrates continued confidence in Sundial's business and the anticipated cash flow generating ability of our Sundial platform", added Mr. Kuenzlen.

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