Canopy Growth Corporation’s $750 Million Credit Facility

Cassels acted as Canadian counsel for Canopy Growth, while Paul, Weiss, Rifkind, Wharton & Garrison LLP acted as US counsel for Canopy Growth Corporation on the deal.

On March 18, 2021, Canopy Growth Corporation entered into a credit agreement with, among others, funds advised by King Street Capital Management, L.P. as the anchor lender, providing for a senior secured term loan facility in the aggregate principal amount of US$750 million. Canopy Growth also has the ability to obtain up to an additional US$500 million pursuant to the credit agreement at some point in the future, if needed.

The term loan facility has no amortization payments and matures on March 18, 2026. The gross proceeds, net of fees and expenses, will be used by Canopy Growth for working capital and general corporate purposes, including without limitation, growth investments, acquisitions, capital expenditures and strategic initiatives. The facility has a coupon of LIBOR plus 8.50% and is subject to a LIBOR floor of 1.00%.

Canopy Growth (TSX:WEED,NASDAQ:CGC) is a world-leading diversified cannabis and cannabinoid-based consumer product company, driven by a passion to improve lives, end prohibition, and strengthen communities by unleashing the full potential of cannabis.

King Street is an $18 billion global investment management firm founded in 1995 with offices in New York, London, Singapore, Tokyo and Charlottesville, VA.

The Cassels team was led by Chuck Rich (Picture, Banking & Specialty Finance and Cannabis) and Jonathan Sherman (Business and Cannabis), and included Daniel Cipollone, Winda Chan, Paras Patel and Tristan Davis (Banking & Specialty Finance and Cannabis), Ben Leith and Lucas Blair (Real Estate & Development and Cannabis), Chris Norton and Corinne Grigoriu (Tax and Cannabis) and Chandimal Nicholas and Marco Ciarlariello (Intellectual Property and Cannabis).

The Paul, Weiss team included corporate partners Lawrence Wee, Austin Witt and Andrew Foley and counsel Gabriella Toossi; intellectual property partner Claudine Meredith-Goujon; tax partner Patrick Karsnitz; real estate partner Salvatore Gogliormella; restructuring counsel Diane Meyers; and environmental counsel William O’Brien.

Involved fees earner: Lucas Blair – Cassels Brock & Blackwell LLP; Winda Chan – Cassels Brock & Blackwell LLP; Marco Ciarlariello – Cassels Brock & Blackwell LLP; Daniel Cipollone – Cassels Brock & Blackwell LLP; Tristan Davis – Cassels Brock & Blackwell LLP; Corinne Grigoriu – Cassels Brock & Blackwell LLP; Ben Leith – Cassels Brock & Blackwell LLP; Chandimal Nicholas – Cassels Brock & Blackwell LLP; Christopher Norton – Cassels Brock & Blackwell LLP; Paras Patel – Cassels Brock & Blackwell LLP; Chuck Rich – Cassels Brock & Blackwell LLP; Jonathan Sherman – Cassels Brock & Blackwell LLP; Andrew Foley – Paul Weiss Rifkind Wharton & Garrison; Salvatore Gogliormella – Paul Weiss Rifkind Wharton & Garrison; Patrick Karsnitz – Paul Weiss Rifkind Wharton & Garrison; Claudine Meredith-Goujon – Paul Weiss Rifkind Wharton & Garrison; Diane Meyers – Paul Weiss Rifkind Wharton & Garrison; William O’Brien – Paul Weiss Rifkind Wharton & Garrison; Gabriella Toossi – Paul Weiss Rifkind Wharton & Garrison; Lawrence Wee – Paul Weiss Rifkind Wharton & Garrison; Austin Witt – Paul Weiss Rifkind Wharton & Garrison;

Law Firms: Cassels Brock & Blackwell LLP; Paul Weiss Rifkind Wharton & Garrison;

Clients: Canopy Growth Corp.;

Martina Bellini

Author: Martina Bellini