Curaleaf (OTC:CURLF) has secured a new credit facility. The company announced Wednesday that it will have access to $300 million, which is being provided by a syndicate of lenders. It did not identify the members of the syndicate.

That amount represents a slightly higher figure than originally planned. When Curaleaf first announced in December it had received commitments for the facility, the anticipated amount was $275 million.

Marijuana leaves on top of U.S. currency.

Image source: Getty Images.

The credit is not cheap. It carries an annual interest rate of 13%, well above the current rates for other types of loans. Its maturity is 48 months from the closing date, and it is payable quarterly in arrears.

Curaleaf said it is to use the credit to refinance its existing debt, retire costs associated with acquisitions, capital expenditures, and "general corporate purposes."

In spite of the onerous interest rate, the company professed to be satisfied with the arrangement. "We are pleased with the upsizing and closing of the deal at what we believe to be attractive terms," it said in the press release heralding the news.

It took pains to point out that this round of financing would not be dilutive to existing shareholders, as it's purely a debt instrument. Dilution has been a significant concern with investors in marijuana stocks, as the companies behind them have frequently resorted to new share issues as sources of funding.

Curaleaf said that the new facility not only makes its balance sheet stronger, it provides the company with "ample liquidity" to execute on its current ambitions.

The company's stock was up slightly on Wednesday, by almost 2%.

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