Verano increases, extends revolving credit line

Executive Summary

• Verano Holdings Corp. has amended its existing revolving credit facility to increase the total commitment from $75 million to $100 million and extend the maturity date from September 29, 2028, to February 28, 2029.
• The upsize was achieved without requiring additional collateral; the facility remains secured by certain owned real estate.
• The amendment provides the company with added balance sheet flexibility, lower cost debt access, and the optionality to release pledged real estate under specific conditions.

Key Details

• Facility Size: Increased from $75 million to $100 million.
• Maturity Date: Extended from September 29, 2028, to February 28, 2029.
• Collateral: Secured by certain owned real estate; no additional collateral was pledged for the increase.
• Current Drawdown: $50 million has been drawn to date, leaving $50 million available to draw upon satisfaction of certain conditions.
• Interest Rate: Floating annual rate equal to SOFR plus 6%, subject to a 4% SOFR floor.
• Repayment Terms: No required amortization payments; repayment allowed at any time in $2.5 million increments.
• Prepayment Penalty: Interest-only make-whole payment required if repaid before the six-month anniversary of the applicable financing.
• Collateral Release: Proportionate release of real estate permitted provided the outstanding principal balance does not exceed 80% of the appraised value of the remaining pledged real estate.
• Agent: Chicago Atlantic Admin LLC.

Notable Quotes

• George Archos, CEO: "Building on our ongoing strategy to strengthen our balance sheet, we're pleased to upsize our borrowing availability and extend the maturity of our existing revolving credit facility... These improvements to our revolving credit facility provide us added flexibility to deploy capital without pledging any additional collateral, marking a strategic step forward while we continue advancing debt refinancing discussions."
• Peter Sack, Managing Partner, Chicago Atlantic: "We are pleased to support Verano's growth and the optimization of its balance sheet with innovative solutions."