Verano Holdings closes $195M senior secured term loan

Executive Summary

• Verano Holdings Corp. has closed a $195 million senior secured term loan refinancing agreement led by Needham Bank and Chicago Atlantic Financial Services LLC.
• The company simultaneously drew the remaining $50 million available under its existing revolving credit facility, which was upsized to $100 million in January 2026.
• The proceeds are being used to refinance and retire all outstanding indebtedness under the company's prior October 2022 credit agreement, aiming to lower the cost of capital and strengthen the balance sheet.

Key Details

• Transaction Structure: $195 million senior secured term loan.
• Agents: Needham Bank (Administrative and Collateral Agent) and Chicago Atlantic Financial Services LLC (Co-Administrative Agent).
• Placement Agent: A.G.P. Canada Investments ULC.
• Legal Counsel: Blank Rome (for Needham Bank and agents); Winston & Strawn LLP (for Verano).
• Maturity Date: March 11, 2029, with an option to extend for an additional one-year period subject to customary conditions and an extension fee.
• Interest Rate: Floating rate equal to term SOFR plus 5.50%, subject to a 4% term SOFR floor or 9.50% per annum.
• Amortization: Monthly principal repayments of $875,000 beginning in April 2026.
• Prepayment Terms: 1.50% prepayment premium during the first two years; 0% thereafter (unless the maturity extension is exercised, in which case the premium remains 1.5%).
• Use of Proceeds: Refinancing and retiring all outstanding indebtedness under the prior October 2022 credit agreement.
• Revolving Facility: Simultaneous draw of the remaining $50 million from the existing revolving credit facility (initially entered into September 2025, upsized to $100 million in January 2026).

Notable Quotes

• George Archos, CEO and President, Verano Holdings Corp.: "Securing our new $195-million term loan backed by a highly respected regional institution in Needham Bank is a watershed moment for Verano, serving as powerful validation of our operational and financial discipline... We believe this arrangement provides Verano some of the most beneficial terms in the industry, including a significantly lower cost of capital, maturity date and prepayment flexibility, and favourable interest rates."
• Joseph Campanelli, Chairman, President and CEO, Needham Bank: "Needham Bank is pleased to offer a comprehensive suite of financial services... Our ability to provide local decision making and a compliant, nationwide banking platform perfectly aligns with Verano's operational excellence and strong financial profile."
• Peter Sack, Managing Partner, Chicago Atlantic: "We are thrilled to build upon our relationship with Verano through a partnership of bank and non-bank capital... Chicago Atlantic is proud to support that growth and Verano's exceptional team."