Verano Holdings Corp. announced the closing of a $195,000,000 senior secured term loan (the "Term Loan") under a new credit agreement led by Needham Bank, a Massachusetts commercial bank, as administrative and collateral agent, and Chicago Atlantic Financial Services, LLC, as co-administrative agent. Simultaneous with the refinancing, the Company also announced it has drawn the remaining $50,000,000 available under its existing revolving credit facility, which was initially entered into in September 2025 and subsequently upsized to $100,000,000 in January 2026.
Key Terms of the Agreement: Principal Amount: $195,000,000; Maturity Date: March 11, 2029, with an option for the Company to extend the maturity date for an additional one-year period, subject to customary conditions and an extension fee; Interest Rate: A floating rate equal to Term SOFR plus 5.50%, subject to a 4% Term SOFR floor, or 9.50% per annum; Amortization: Manageable monthly principal repayments of $875,000 beginning in April 2026; Prepayment Flexibility: The Company maintains the option to voluntarily prepay the Term Loan with a modest 1.50% prepayment premium during the first two years of the facility and 0% thereafter; provided that if the extension is exercised, the prepayment premium will always be 1.5%; Use of Proceeds: Proceeds from the Term Loan, along with other funds, are being used to refinance and retire all outstanding indebtedness under the Company's prior October 2022 credit agreement. A.G.P. Canada Investments ULC acted as exclusive placement agent to Verano. Blank Rome acted as legal counsel to Needham Bank and as counsel to Needham Bank and Chicago Atlantic as co-administrative agents.
Winston & Strawn LLP acted as legal counsel to Verano in connection with the transaction.
