Chart Of The Week: Cannabis Credit Markets Are Hot Across the Credit Quality Spectrum
Portfolio Pulse from Viridian Capital Advisors
The cannabis debt market is experiencing significant activity, with $632M in proceeds from recent transactions. Companies like TerrAscend, Jushi, AYR, PharmaCann, Cannabist, and Acreage are involved in refinancing existing debt. The market is accurately pricing credit risk, and demand exists across the credit quality spectrum.
September 16, 2024 | 2:55 pm
News sentiment analysis
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NEUTRAL IMPACT
AYR completed $114M in refinancings earlier this year, indicating strong activity in the cannabis debt market.
AYR's refinancing activity shows engagement in the debt market, but without specific new developments, the short-term impact is neutral.
CONFIDENCE 80
IMPORTANCE 50
RELEVANCE 60
NEUTRAL IMPACT
Cannabist's refinancing is part of a broader trend in the cannabis debt market, reflecting ongoing financial restructuring.
Cannabist's refinancing aligns with market trends, indicating stability but not enough for a significant short-term impact.
CONFIDENCE 80
IMPORTANCE 50
RELEVANCE 60
NEUTRAL IMPACT
Jushi's first-priority notes are now quoted at closer to 17%, indicating a challenging credit environment but also a successful refinancing.
The high yield on Jushi's notes reflects credit challenges, but the successful refinancing suggests stability, leading to a neutral short-term impact.
CONFIDENCE 85
IMPORTANCE 60
RELEVANCE 70
POSITIVE IMPACT
Acreage's refinancing shows investor demand despite high liabilities, potentially improving its credit ranking.
Acreage's ability to refinance despite high liabilities suggests improved liquidity and potential credit ranking enhancement, likely benefiting its stock.
CONFIDENCE 85
IMPORTANCE 65
RELEVANCE 75
POSITIVE IMPACT
TerrAscend's recent financing at a 12.75% cost alleviated liquidity pressures, improving its credit ranking. This indicates a positive market response to its refinancing efforts.
TerrAscend's refinancing at a lower-than-expected yield suggests improved market perception and liquidity, likely boosting short-term stock performance.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 80