Adam Jackson
TerrAscend Corp. (CSE: TER) (OTCQX: TRSSF) announced another step this week in its ongoing strategy to reduce debt and drive positive cash flow. The company’s subsidiary, WDB Holding PA Inc., completed the paydown of $37 million of its senior secured term loan in Pennsylvania, effectively lowering the outstanding balance to $78 million.
The loan, which carries a fixed interest rate of 12.875%, provided a $4.8 million-dollar reduction in annual interest expenses. The move aligns with the broader debt-reduction strategy TerrAscend has pursued over the past year, Jason Wild, executive chairman of TerrAscend, said in a statement Friday.
“All of the critical steps we have taken recently, including the sale of our facility in Canada, the closing of a lower interest bank loan with Stearns Bank, and the completed private placements, align with our strategy to reduce debt, lower interest expense and continue to drive positive cashflow from operations,” Wild said.
The company has been working to restructure its balance sheet and fired off a round of different strategic moves this week, resulting in a reduction of their debt and interest expense by over 40%, he noted.
“We expect the increased liquidity from our upcoming TSX listing should help to further decrease our cost of capital going forward,” Wild added.
TerrAscend previously paid down $35 million on the same loan in December 2022.
