Decibel Cannabis closes $61 million credit facility with ATB Financial

Decibel Cannabis Company Inc. (TSXV: DB) (OTCQB: DBCCF) announced it has closed credit facilities totaling $61 million with ATB Financial and ATB Cormark Capital Markets.

The financing package includes a $40 million first lien term facility that replaces an existing facility from Servus Credit Union Ltd. that was due in January 2027. The new term facility extends the maturity to February 2030 and features normal course principal repayments with a bullet payment at maturity.

The agreement also establishes a $10 million revolving first lien credit facility, with $3 million immediately available and the remainder accessible once certain conditions are met. Additionally, the package includes an $11 million second lien term facility.

According to the company, the refinancing reduces 2026 payment obligations by $5 million compared to the previous arrangement. The facilities bear interest at ATB's referenced benchmark rates plus a spread determined by funded debt to trailing twelve month adjusted EBITDA.

"We are now free cash flow positive and without any material near-term debt maturities," said Ben Sze, chief executive officer of Decibel, in a statement.

The first lien facilities are secured by a first-priority security interest over all assets of Decibel and certain material subsidiaries. The second lien facility is secured by a second-priority security interest over the same assets.

Stuart Boucher, chief financial officer, stated the company expects to maintain a debt to EBITDA ratio of less than 2.0x with the new financing structure.

Decibel operates cannabis processing and manufacturing facilities in Calgary, Alberta, cultivation facilities in British Columbia and Saskatchewan, and an EUGMP licensed facility in Ontario.

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