4Front Ventures Corp. (CSE:FFNT) (OTCQX: FFNTF) has entered into a non-binding term sheet with its senior secured lender, LI Lending, LLC to extend the maturity date, reduce the interest payable, and expand the third-party financings available under the December 17, 2020 amended and restated loan and security agreement between 4Front and lender on the terms and conditions set out therein.
Under the term sheet, the lender would extend the maturity date of the loan to May 1, 2026 and reduce the interest payable to 12.0% per year, payable monthly. Previously, the lender advanced $42.5 million accruing interest at 16.5% per year, of which 12.5% is payable monthly, and 4% accrues monthly, with all accrued interest and principal payable on May 1, 2024.
Currently, lender holds a senior secured position on all assets of 4Front and certain of its subsidiaries and the right of consent over any additional financings secured by those assets. The term sheet contemplates that lender will consent to equipment financing collateralized by 4Front equipment of up to …