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Verano refinances $350 million facility, extends maturity to 2026
By Marisa Wong
Los Angeles, Oct. 27 – Verano Holdings Corp. announced it entered into a credit agreement to refinance its existing $350 million credit facility, extending the maturity date to Oct. 30, 2026, according to a press release.
The refinanced debt bears interest at a floating rate based on the prime rate, with a current rate of 12.75% per annum.
The refinanced facility gives the company flexibility to secure additional future debt of up to $270 million, comprised of $120 million of third-party mortgages secured by real estate that is currently unencumbered, a $100 million accordion under the new credit facility to be funded at the option of the existing lenders and a $50 million third-party revolver upon the passage of cannabis banking legislation.
The ability to incur an additional $120 million of debt secured by real estate that is currently unencumbered is expected to enable the company to lower its blended total cost of debt.
The company said it believes the potential $50 million revolver could be obtained on improved terms if cannabis banking legislation becomes effective.
Additionally, under the new credit facility, Verano can elect to prepay up to $100 million of outstanding debt at any time by incurring a prepayment fee of $1 million.
George Archos, chairman, chief executive officer and founder of the company, is participating in the credit facility as a lender.
ATB Capital Markets Inc. and Chicago Atlantic Advisors, LLC acted as lead arrangers for the senior secured credit facility.
Chicago Atlantic is also the administrative agent for the credit facility.
Verano is a multi-state cannabis operator.
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