4Front Ventures Corp.: debt financing — 4Front Ventures secures $10M term loan facility from ALT Debt II, LP

4Front Ventures Corp.

Loan up to $10M; $6M immediately available, additional $4M subject to conditions.
Interest rate = greater of Prime+7% or 15.5%; maturity originally Dec 1, 2023, extendable to Sep 30, 2026.
Secured by all assets; financial covenants: min liquidity $3M from Dec 31, 2023; fixed charge coverage >=1.10, leverage <=3.00 from Jun 30, 2024.
Proceeds for Illinois dispensary build-out, resolving liabilities, and transaction expenses.
Loan agreement amended from initial press release; Items 1.01 and 2.03 added in this 8-K/A.

Key facts

Extracted from this filing and checked against the source text.

Debt Financings SEC 8-K Item 2.03/2.04 confidence 0.9

4Front Ventures Corp. incurred term loan of up to $10 million with ALT Debt II, LP at the greater of (a) the sum of the rate of interest per annum last quoted by The maturing originally set to December 1, 2023; however...in no circumstance will the maturity date be extended beyond September 30, 2026.

Instrument: term loan
Principal: up to $10 million
Counterparty: ALT Debt II, LP
Rate: the greater of (a) the sum of the rate of interest per annum last quoted by The
Maturity: originally set to December 1, 2023; however...in no circumstance will the maturity date be extended beyond September 30, 2026
Event: incurrence

Exact text from the filing

On October 13, 2023, 4Front Ventures Corp. (the “Company”) entered into a Loan Agreement (the “Loan Agreement”), by and among the Company, the Company’s wholly-owned subsidiaries, ALT Debt II, LP (the “Lender”) and GGG Partners, LLC, as collateral agent. Pursuant to the Loan Agreement, the Lender is providing the Company with term loans up to $10 million (the “Term Loans”), $6 million of which was immediately available to the Company subject to certain holdbacks.

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Material Agreements SEC 8-K Item 1.01/1.02 confidence 0.9

4Front Ventures Corp. entered into Loan Agreement with ALT Debt II, LP valued at $10 million (effective 2023-10-13).

Action: entry
Agreement: credit facility
Counterparty: ALT Debt II, LP
Value: $10 million
Effective: 2023-10-13

Exact text from the filing

On October 13, 2023, 4Front Ventures Corp. (the “Company”) entered into a Loan Agreement (the “Loan Agreement”), by and among the Company, the Company’s wholly-owned subsidiaries, ALT Debt II, LP (the “Lender”) and GGG Partners, LLC, as collateral agent. Pursuant to the Loan Agreement, the Lender is providing the Company with term loans up to $10 million (the “Term Loans”)

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Source: SEC EDGAR

accession 0001279569-23-001322

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