Press release
Sundial Announces Successful Amendments with Senior Lenders, US$18 Million Convertible Notes Issuance and Close of Bridge Farm Sale
Amends $79.3 million syndicated credit agreement Converts $73.2 million of term debt and interest into convertible notes Issues US$18.0 million in
About this update from Sndl Inc.
[{"type":"text","content":"Amends $79.3 million syndicated credit agreement Converts $73.2 million of term debt and interest into convertible notes Issues US$18.0 million in subordinated convertible notes Closes sale of Bridge Farm Group Cancels all previously issued shares and potential obligations under the original Bridge Farm acquisition agreement CALGARY, AB, June 8, 2020 /PRNewswire/ - Sundial Growers Inc. (Nasdaq: SNDL) (\"Sundial\" or \"the Company\") announced today that it has completed four transactions as a part of its broader financial restructuring. Sundial believes these transactions position it for future success with reduced leverage, added flexibility and improved liquidity. All amounts referred to are expressed in Canadian dollars, unless otherwise specified. \n\n\"This announcement marks an exciting day for Sundial. Financial flexibility and balance sheet health are critical to our ability to execute on Sundial's operating strategy,\" said Zach George, Sundial's Chief Executive Officer. \"With our improved capital structure and streamlined operations, we have reduced our annual cash obligations, including debt service costs, by more than $50 million. Sundial is now in a much better position to take advantage of the expected continuation of the strong consumer demand and increased sales levels we have experienced to date in 2020. This restructuring would not have been possible without the constructive stance and professional approach taken by our lenders. I want to thank our employees and shareholders for their loyalty and support as we navigated through this challenging process.\" \nSummary of Net Debt (expressed in millions of Canadian dollars):\nPre-Restructuring\nPost-Restructuring\nSenior Secured Credit Facility\n79.3\n79.3\nTerm Debt Facility\n115.0\n-\nSecond Lien Convertible Notes\n-\n73.2\nSubordinated Convertible Notes (1)\n-\n24.3\nTotal Debt\n194.3\n176.8\nTotal Cash\n15.2\n33.2\nTotal Net Debt (2)\n179.4\n143.6\nTotal Annual Interest Expense\n14.7\n3.8\nTotal Annual Debt Service\n31.6\n10.1\n(1) US$18.0 million face value\n(2) Total debt less total cash\n \nSenior Secured Credit Facility Amendments for Added Financial Flexibility\nSundial has entered into an agreement with its senior lenders to amend and restate its syndicated senior secured credit agreement. As a result of Sundial meeting all previous terms outlined by its...