Villages Farms (TSX: VFF) (NASDAQ: VFF) announced this morning that its majority owned joint venture, Pure Sunfarms, has taken on additional debt as a means of strengthening its balance sheet. This debt was acquired through the expansion of an outstanding credit facility, which has now seen an accordion feature and an additional term loan component added.
The expanded loan facility, obtained through a lending syndicate lead by the Bank of Montreal, has now been finalized to have a capacity of $59 million, a significant expansion from the existing loan of $19 million. Included is a new term loan for a total of $25 million, and a $15.0 million revolver, effectively adding an according feature to the facility.
The new term loan has been marked to be used specifically for Pure Sunfarms Delta 2 greenhouse, while the existing loan was earmarked specifically for the Delta 3 facility.
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All three components of the term loan have a maturity date of February 7, 2022.
Village Farms last traded at $4.79 on the Nasdaq.
Information for this briefing was found via Sedar and Village Farms International. 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.
