Glass House Brands announces $50M senior secured loan

Glass House Brands (GLASF) announced the signing of a new $50 million senior-secured credit facility. The interest rate for the new SSL facility will be fixed at 8.58% for the term of the loan. The first two years are interest-only. Principal and interest payments will be made during the last three years based on a straight-line amortization of the loan amount over a period of 15 years, with a balloon payment of $40 million due on the maturity date. The loan will be secured by a first priority lien on the Company’s Camarillo, Padaro and Casitas greenhouse farms and facilities and a first priority lien on the rest of the Company’s assets excluding other real estate. Key covenants of note are: Minimum liquidity of $10 million to be held in an account at the lending institution throughout the term of the loan. Consolidated Fixed-Charge Coverage Ratio of at least 1.25x tested quarterly on a trailing-twelve-month basis with the first test to be on December 31st, 2024. The Company intends to use the proceeds from the loan to pay back US$41.0 million outstanding on the previous senior secured loan plus fees and for working capital and general corporate purposes.