Sundial Growers (NASDAQ: SNDL) has managed to settle $50 million of outstanding debt ahead of schedule. The company announced this morning that it was able to prepay the sizable portion of its outstanding senior secured non-revolving term credit facility, significantly improving its balance sheet.
The significant paydown follows the news just weeks ago that the company had managed to convert all notes from its June 5 issuance to that of equity. At the time, that amounted to a total conversion of approximately $73.2 million, which left just $72 million worth of debt on its balance sheet, all of which was related to its senior secured credit facility.
The paydowns are reportedly a result of the company raising $117 million as of November 30 via equity and related issuances, while hosting a cash position of $85 million. This position is believed to have grown further due to in-the-money warrants, as well as a recently announced US$150 million at the market offering.
That significant cash position enabled the firm to make today’s $50 million payment on its debt, leaving an estimated $22 million in debt on its balance sheet, while $39 million remains in the bank as of this morning.
Finally, the payment has resulted in a reduction of annual interest costs of $2.5 million.
Sundial Growers last traded at $0.51 on the Nasdaq.
Information for this briefing was found via Sedar and Sundial Growers. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
As the founder of The Deep Dive, Jay is focused on all aspects of the firm. This includes operations, as well as acting as the primary writer for The Deep Dive’s stock analysis. In addition to The Deep Dive, Jay performs freelance writing for a number of firms and has been published on Stockhouse.com and CannaInvestor Magazine among others.