Marijuana multistate operator Verano Holdings refinanced its existing $350 million credit facility from cannabis industry real estate lender Chicago Atlantic.
Verano originally signed the credit facility in July 2020, and a regulatory filing shows it has been amended multiple times.
According to a Thursday news release, the senior secured loan now matures in October 2026 and carries a floating annual interest rate, currently at 12.75%.
Subject to conditions, the refinanced credit facility lets Chicago-based Verano “secure additional future indebtedness of up to $270 million,” including:
- $120 million in third-party mortgages secured against real estate.
- A $100 million accordion “to be funded at the option of the existing lenders.”
- “A $50 million third-party revolving credit facility upon the passage of cannabis banking legislation.”
George Archos, Verano’s CEO, chair and founder, is one of the lenders.
“The ability to incur an additional $120 million in indebtedness secured by real estate that is currently unencumbered is expected to enable the company to lower its blended total cost of debt,” Verano said in the release.
“The company believes the potential $50 million revolving credit facility could be obtained on improved terms if cannabis banking legislation becomes effective.”
For a $1 million fee, Verano can also prepay up to $100 million of the credit facility.
The refinancing comes at a time the company is being taken to court by Minnesota-based Goodness Growth Holdings after Verano terminated its deal to acquire that company.
Shares of Verano trade as VRNO on the Canadian Securities Exchange and as VRNOF on U.S. over-the-counter markets.