07:47 AM EDT, 10/17/2024 (MT Newswires) -- Canopy Growth ( CGC ) , a global cannabis company, was at last look down 0.7% in US premarket trade on Thursday even as it made an early prepayment under its senior secured term loan in an aggregate principal amount equal to US$100 million at a discounted price of US$97.5 million.

In a statement the company said the move, which in addition to reducing the company's leverage results in annualized interest expense savings of approximately US$14 million, underscores its "strong commitment to fiscal discipline and further strengthens its financial position as it continues to execute on its strategic priorities".

As previously announced in August, this prepayment was agreed to between the company and its senior lenders as part of a series of amendments to a term loan, which, among other things, included an extension of the term loan's maturity date to December 18, 2026. Pursuant to the term loan amendment, the company has the option to make an additional prepayment equal to US$100 million at a discounted price of US$97.5 million by March 31, 2025. If payment of the second prepayment is made, the maturity date of the term loan will automatically further extend to September 18, 2027.

Judy Hong, CFO of Canopy Growth ( CGC ), in the statement said: "This early prepayment reflects our ongoing commitment to reducing cash burn and strengthening our capital structure. Our proactive steps to reduce debt and extend maturity enhance our balance sheet flexibility to invest in growth areas and drive long-term value creation for our shareholders."

Canopy saw its shares rise $0.14,

or 2.5%, to $5.85 on the TSX yesterday.