Verano Announces $195 Million Senior Secured Term Loan Refinancing Agreement to Fund Company’s Strategic Growth Initiatives

Core Viewpoint - Verano Holdings Corp. has successfully closed a $195 million senior secured term loan, highlighting its ability to access favorable capital terms and lower-cost financing in the cannabis industry [1][3]. Financing Details - The term loan has an initial interest rate of 9.5% per annum, with a floating rate equal to Term SOFR plus 5.50%, subject to a 4% Term SOFR floor [6]. - The maturity date for the loan is set for March 11, 2029, with an option to extend for an additional year under customary conditions [6]. - Monthly principal repayments of $875,000 will begin in April 2026, allowing for manageable amortization [6]. - The company retains prepayment flexibility, with a 1.5% prepayment premium during the first two years and 0% thereafter, maintaining the premium if the extension is exercised [6]. Strategic Implications - The new financing arrangement is viewed as a significant validation of the company's operational and financial discipline, positioning it to strengthen its balance sheet and pursue strategic growth initiatives [3]. - The partnership with Needham Bank and Chicago Atlantic Financial Services is expected to enhance Verano's access to mainstream financial products within the cannabis sector [3][9]. Use of Proceeds - Proceeds from the term loan will be utilized to refinance and retire all outstanding indebtedness under the company's previous credit agreement from October 2022 [6]. Company Overview - Verano Holdings Corp. is a leading multi-state cannabis operator in the U.S., known for its extensive product offerings and operational footprint across 13 states, with over 1.1 million square feet of cultivation capacity [8].