October 27, 2022
Verano refinances US$350 million credit facility.
Verano Holding Corp. (CSE: VRNO), a leading multi-state cannabis company, has closed a credit agreement to refinance its existing US$350 million credit facility, extending its maturity with a four-year term. ATB Capital Markets (“ATB”) and Chicago Atlantic Advisors, LLC (“Chicago Atlantic”) acted as Co-Lead Arrangers.
The refinanced indebtedness bears interest at a floating rate based on the prime rate, with a current rate of 12.75% per annum, which reflects favorably on Verano given today’s rising-rate environment.
Adam Carlson, Managing Director, Investment Banking at ATB Capital Markets commented, “ATB is pleased to have acted on Verano's behalf, alongside our partners at Chicago Atlantic. This structure provides attractive optionality for early repayment, releases a significant amount of real estate collateral and provides the ability to attain additional capital should we see progress in cannabis legislation.”
The transaction was closed with a strong mix of both cannabis focused lenders as well as newer parties to the space. The company continues to target a 10.5% blended cost of indebtedness including real estate.
“We congratulate Verano for the strong execution of their strategic vision. We are very pleased to provide significant optionality to support their future growth plans.”
About ATB Capital Markets
ATB Capital Markets offers holistic corporate and capital markets advice, combined with customized financial solutions to help businesses thrive. We’re a full-service investment dealer for key industries on the cusp of a new era. Established in 2020, ATB Capital Markets helps clients with services that include investment and corporate banking, sales and trading, institutional research, and risk management. With a highly specialized team, we are here to bring entrepreneurism, unique opportunities, and creative solutions — all with integrity and an unwavering commitment — to serve our clients’ need for expert advice and access to capital. ATB Capital Markets is Broker/Dealer #03 on the Toronto Stock Exchange.
Verano is a leading, vertically integrated, multi-state cannabis operator in the U.S., devoted to the ongoing improvement of communal wellness by providing responsible access to regulated cannabis products. With a mission to address vital health and wellness needs, Verano produces a comprehensive suite of premium, innovative cannabis products sold under its trusted portfolio of consumer brands, including Verano™, Avexia™, Encore™, Savvy™ and MÜV™. Verano’s portfolio encompasses 14 U.S. states, with active operations in 13, including 14 production facilities comprising over 1,000,000 square feet of cultivation capacity. Verano designs, builds, and operates dispensaries under retail brands including Zen Leaf™ and MÜV™, delivering a superior cannabis shopping experience in both medical and adult-use markets. Learn more at www.verano.com.
About Chicago Atlantic and Green Ivy Capital, LLC
Chicago Atlantic Advisers, LLC is an asset management firm specializing in direct lending and opportunistic private credit investing. Founded in 2018 by Tony Cappell, John Mazarakis, and Andreas Bodmeier, the firm seeks to capitalize on North American investment opportunities that are time-sensitive, complex, or in dislocated markets, where risk is fundamentally mispriced. Through its affiliate Green Ivy Capital, LLC, the firm manages a diversified portfolio of credit investments in the cannabis space and is actively investing across the value chain.