Verano Refinances $350 Million Credit Facility with Significant Optionality to Bolster Strategic Growth Plans

• Verano refinances existing $350 million credit facility, extending the maturity with a four-year term
• Floating interest rate based on the prime rate and at a current rate of 12.75%, which reflects favorably on Verano given today’s rising-rate environment
• Credit Agreement structure provides Verano with the opportunity to obtain up to $270 million of additional debt financing, comprised of $120 million of real-estate secured indebtedness, a $100 million accordion, and a $50 million revolving credit facility
• Optional prepayment features allow for up to a $100 million prepayment at any time for a favorable $1 million prepayment fee, allowing Verano to actively manage its blended cost of capital
• In the medium term, Verano is targeting a blended interest rate on total indebtedness of 10.5% as the Company plans to continue to pursue lower cost real-estate secured indebtedness, similar to its recently executed mortgages with fixed interest rates below the current prime rate
  

CHICAGO, Oct. 27, 2022 (GLOBE NEWSWIRE) -- Verano Holdings Corp. (CSE: VRNO) (OTCQX: VRNOF) (“Verano” or the “Company”), a leading multi-state cannabis company, today announced it has entered into a credit agreement to refinance its existing $350 million credit facility, extending the maturity date to October 30, 2026. The refinanced indebtedness bears interest at a floating rate based on the prime rate, with a current rate of 12.75% per annum.

The refinanced facility provides the Company flexibility to secure additional future indebtedness of up to $270 million, comprised of $120 million in 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 revolving credit facility upon the passage of cannabis banking legislation, in each case subject to certain conditions. 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. The Company believes the potential $50 million revolving credit facility 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 indebtedness 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.