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XS Financial Closes $15MM Demand Term Credit Facility with Garrington Group of Companies

September 29, 2021, 07:34 AM
Filed Under: Cannabis

XS Financial, a specialty finance company providing equipment leasing solutions to cannabis companies in the United States, announced that a newly formed wholly-owned subsidiary, incorporated as a special purpose vehicle for the purpose of funding new leases under the credit facility, has entered into a definitive two-year credit agreement with the Garrington Group of Companies ("Garrington") for a secured drawdown term loan in the aggregate amount of up to $15 million. All figures are in US Dollars.

Loans made under the Credit Facility will bear interest at an annual rate equal to Prime plus 8.5% per annum with a Prime Rate floor of no less than 3.25%. The loans made under the Credit Facility contain customary financial covenants for transactions of this type, including limitations with respect to indebtedness, liens, and disposition of assets. Subject to demand or an uncured event of default, the Credit Facility shall mature two years from the Closing Date.

XS Financial intends to use such loan proceeds, together with cash on hand, to fund additional equipment leases with new and existing customers.

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