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Line of Credit and Long-term Debt
 3 Months Ended
Mar. 31, 2023
Debt Disclosure [Abstract]  
Line of Credit and Long-term Debt

5. LINE OF CREDIT AND LONG-TERM DEBT

 

The following table provides details for the carrying values of debt as of:

 

 

 

March 31, 2023

 

 

December 31, 2022

 

Term Loan - ("FCC Loan") - repayable by monthly principle payments of $164 and accrued interest at a rate of 8.25%; matures April 1, 2025

 

$

24,264

 

 

$

24,755

 

Term Loan - Pure Sunfarms - C$19.0M - Canadian prime interest rate plus an applicable margin, repayable in quarterly payments equal to 2.50% of the outstanding principal amount, interest rate of 8.95%; matures February, 2026

 

 

9,294

 

 

 

9,664

 

Term loan - Pure Sunfarms - C$25.0M - Canadian prime interest rate plus an applicable margin, repayable in quarterly payments equal to 2.50% of the outstanding principal amount starting June 30, 2021, interest rate of 8.95%; matures February, 2026

 

 

14,406

 

 

 

14,867

 

BDC Facility - Pure Sunfarms - non-revolving demand loan at prime interest plus 3.75%, matures December 31, 2031

 

 

4,066

 

 

 

4,181

 

Total

 

$

52,030

 

 

$

53,467

 

 

On March 13, 2023, the Company entered into a Note Modification Agreement (the “Modification”) for its line of credit ("Operating Loan"). The Modification eliminated the use of LIBOR as a basis to determine certain interest rates and transitioned to the Secured Overnight Financing Rate (“SOFR”) for such purposes. This Modification did not have a material effect on the Company's results of operations or its financial position. The Company’s Operating Loan had $4,000 amount drawn on the facility as of March 31, 2023 and December 31, 2022.

The Company has two Pure Sunfarms Term Loans (“PSF Term Loans”) that had a maturity in February 2024. The PSF Term Loans were amended in May 2023 to, among other changes, extend the maturity date of the PSF Term Loans to February 2026. The other terms and conditions of the PSF Term Loans remain substantially the same.

The carrying value of the assets and securities pledged as collateral for the FCC Loan as of March 31, 2023 and December 31, 2022 was $123,248 and $113,159, respectively.

The carrying value of the assets pledged as collateral for the Operating Loan as of March 31, 2023 and December 31, 2022 was $27,142 and $26,666, respectively.

The Pure Sunfarms line of credit had $0 and $3,529 outstanding as of March 31, 2023 and December 31, 2022, respectively. As of March 31, 2023 and December 31, 2022, Pure Sunfarms had an outstanding letter of credit issued to BC Hydro against the revolving line of credit of $C5,145.

The Company is required to comply with financial covenants, measured either quarterly or annually depending on the covenant. The Company was in compliance with all of its credit facility covenants as of March 31, 2023.

The weighted average annual interest rate on short-term borrowings as of March 31, 2023 and December 31, 2022 was 9.45% and 9.12%, respectively.

Accrued interest payable on the Credit Facilities and loans as of March 31, 2023 and December 31, 2022 was $345 and $398, respectively, and these amounts are included in accrued liabilities in the Condensed Statements of Financial Position.

The aggregate annual maturities of long-term debt for the remainder of 2023 and thereafter are as follows:

 

Remainder of 2023

 

$

6,262

 

2024

 

 

7,270

 

2025

 

 

27,401

 

2026

 

 

18,129

 

2027

 

 

677

 

Thereafter

 

 

2,225

 

Total

 

$

61,964