Trulieve Cannabis (TSE:TRUL) (OTC:TCNNF), a cannabis company with a heavy presence in Florida, announced that it repurchased 57,000 of its 8% senior secured notes, which had a face value of $1,000 each. The firm bought them for $47.6 million, a 16.5% discount to their face value. The notes were set to mature on October 6, 2026. In other words, Trulieve essentially is saving itself about three years’ worth of the 8% interest payments on the 57,000 notes, and buying them back at a discount is the cherry on top.
If we do the math, repurchasing 57,000 notes will save the company $4.56 million annually in terms of interest payments.
- Annual Interest Savings = (Number of Notes x Face Value of each Note) x Interest Rate
- Annual Interest Savings = (57,000 notes x $1,000 per note) x 0.08
- Annual Interest Savings = 57,000,000 x 0.08
- Annual Interest Savings = $4,560,000
Nonetheless, while the company has plenty of debt and free cash flow of around –$98 million for the past 12 months, the debt reduction looks like a step in the right direction and will likely be seen as a positive by investors.
Note that all figures mentioned in this article are in U.S. dollars.
Is Trulieve Stock a Buy, According to Analysts?
According to analysts, TRUL stock comes in as a Strong Buy based on five Buys and one Hold rating assigned in the past three months. The average TRUL stock price target of C$14.46 implies 63% upside potential.
If you’re wondering which analyst you should follow if you want to buy and sell TRUL stock, the most profitable analyst covering the stock (on a one-year timeframe) is Pablo Zuanic of Cantor Fitzgerald. Although he has a low success rate of 36%, his average return of 49.96% is very impressive. Click on the image below to learn more.
