Verano Secures US $75,000,000 Revolving Credit Facility

Executive Summary

• Verano Holdings closed a $75 million revolving credit facility (“Revolver”) with Chicago Atlantic Admin, LLC and a regional bank.
• The company immediately drew $50 million to retire an equal amount of higher‑interest senior secured debt, improving its cost of capital.
• An additional $25 million remains available for strategic initiatives, with the facility maturing on 29 Sept 2028 and secured by selected real estate.

Key Details

• Facility Size: $75 million revolving credit facility.
• Drawn Amount: $50 million drawn at closing to pay down existing senior secured credit facility (no pre‑payment penalty).
• Remaining Capacity: $25 million available for future strategic initiatives.
• Interest Rate: Floating rate equal to SOFR + 6% (minimum floor of 4%).
• Maturity: September 29, 2028; repayment permitted in $2.5 million increments with interest‑only make‑whole if repaid before six‑month anniversary.
• Collateral: Secured by selected real estate; up to 60% loan‑to‑value ratio for pledged properties; proportionate release of real estate allowed upon request.
• Amortization: No required amortization payments during the term.
• Strategic Rationale: Lower‑cost debt, flexibility to pay down higher‑interest leverage, and ability to redeploy capital for growth opportunities.

Notable Quotes

“Closing the $75 million revolving credit facility demonstrates our focus on fortifying the balance sheet, accessing lower cost debt, and leveraging our owned real estate to strengthen our foundation and position Verano to take advantage of future opportunities,” – George Archos, Founder & CEO, Verano Holdings.

“Revolving credit facilities are common financial solutions outside of the cannabis industry, and Verano’s revolver is what we believe to be the largest such facility among US operators in the history of the industry…” – Peter Sack, Managing Partner, Chicago Atlantic.