Canopy Growth Corp. says it has signed deals with its secured and unsecured lenders that it expects will help the cannabis company reduce its total debt by about $437 million over the next six months.
The company says the moves are also expected to help lower annual interest costs by approximately $20 million to $30 million.
Canopy chief financial officer Judy Hong says the agreements will enable the company to preserve cash and further improve its balance sheet through accretive and meaningful reductions in its overall debt.
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The company says it will repay about $193 million in existing notes with a mix of cash, shares and new unsecured non-interest bearing convertible debentures.
Canopy will also reduce $100 million debt provided under a credit agreement for a cash payment of $93 million, with the expectation of further principal reductions at 95 cents on the dollar upon completion of certain asset sales.
The company has been selling some of its facilities as part of an organizational transformation announced last year to help reduce spending.
