Canopy
Growth

A world-leading diversified cannabis and cannabinoid-based consumer product company.

Transaction Terms

Security

4.25% convertible senior notes due July 2023

Total Transaction Size

~C$205.5MM

Part 1 (June)

C$12.5MM equitization

Part 2 (July)

C$193MM refi: cash + shares + new CB

Cash Retained

C$92MM vs. full repayment

New CB

Zero-coupon convertible note

Situation Overview

Preserving cash
before maturity

Canopy had engaged HudsonWest in 2022 to help it equitize roughly half of its C$600MM convertible senior notes due July 15, 2023. With a C$237MM maturity now quickly approaching, Canopy looked for ways to preserve cash and continue to de-lever.

Despite facing several regulatory, legal and contractual constraints in connection with the transactions, HudsonWest prepared multiple execution routes to help address the maturity.

HudsonWest’s Role

A multi-part solution
with time pressure

Multiple Execution Routes

HudsonWest worked closely with management to prepare several different execution routes — first, a C$12.5MM equitization in June 2023, followed by a C$193MM refinancing composed of cash, common shares and a new zero-coupon convertible note.

Coordinated Announcement

Canopy announced the second transaction together with amendments to its senior term loan, with a message to the public focused on debt reduction and a constructive outcome with its senior stakeholders.

C$92MM Cash Preserved

Canopy was able to retain C$92MM in cash it otherwise would have owed just days after execution, while also retiring a portion of its term loan at a discount to par.

Just Weeks Before Maturity

The entire two-part transaction was executed with the maturity just weeks away, with the final closing completed the day before maturity — demonstrating HudsonWest's ability to execute complex, constrained transactions under significant time pressure.

CanopyGrowth

Preserving cashbefore maturity

A multi-part solutionwith time pressure

Let's start aconversation.

Canopy
Growth

Preserving cash
before maturity

A multi-part solution
with time pressure

Let's start a
conversation.