Business
Tilray Brands, Inc. Announces Pricing of Registered Offering of $150 Million of Unsecured Convertible Senior Notes
Refinances a meaningful portion of our debt due in June 2024, extending maturity to 2027 and locking in lower fixed interest rate of 5.20%; Strengthens
About this update from Tilray Brands, Inc.
[{"type":"text","content":"Refinances a meaningful portion of our debt due in June 2024, extending maturity to 2027 and locking in lower fixed interest rate of 5.20%; Strengthens balance sheet with additional cash proceeds of $15 million or $37 million if over-allotment is exercised in full, to be used for strategic acquisitions and to pay down debt; Brings the Company’s current cash, cash equivalents and marketable securities on hand to approximately $440 million. LEAMINGTON, Ontario and NEW YORK, May 25, 2023 (GLOBE NEWSWIRE) -- Tilray Brands, Inc. (“Tilray” or the “Company”) (Nasdaq: TLRY; TSX: TLRY), a leading global cannabis-lifestyle and consumer packaged goods company, today announced the pricing of its registered offering of $150 million aggregate principal amount of 5.20% Convertible Senior Notes due 2027 (the “Notes”). Tilray also granted a 30-day option to the underwriters of the Notes offering to purchase up to an additional $22.5 million aggregate principal amount of Notes, solely to cover over-allotments. The offering is expected to close on May 31, 2023, subject to customary closing conditions. Irwin D. Simon, Chairman and CEO, Tilray Brands, Inc., said, “We successfully executed a favorable refinancing which demonstrates the strength of our Company and investor confidence in our management team and strategic plan.” The aggregate net proceeds from the offering, after deducting underwriting discounts and commissions and expenses payable by Tilray, are expected to be approximately $144.8 million, or approximately $166.6 million if the underwriters exercise their option to purchase the additional Notes in full. Tilray intends to use a portion of the net proceeds from this offering to finance the concurrent repurchase of a portion of its outstanding 5.00% Convertible Senior Notes due 2023 and 5.25% Convertible Senior Notes due 2024, as described below, and the remainder of the net proceeds for general corporate purposes. The Notes will be senior unsecured obligations of Tilray. The Notes will mature on June 15, 2027, unless earlier repurchased, redeemed or converted. Interest will accrue on the Notes at a rate of 5.20% per year and will be payable semiannually in arrears on June 15 and December 15 of each year, beginning on December 15, 2023. Noteholders will have the right to convert their Notes into shares of Tilray’s common stock at their op...