Verano, a multi-state cannabis company, closed a $195 million senior secured term loan under a new credit agreement led by Needham Bank, a Massachusetts commercial bank, as administrative and collateral agent, and Chicago Atlantic Financial Services as co-administrative agent.
Simultaneous with the refinancing, the company has also drawn the remaining $50 million available under its existing revolving credit facility, which was initially entered into in September 2025 and subsequently upsized to $100 million in January 2026.
“Securing our new $195 million term loan backed by a highly respected regional institution in Needham Bank is a watershed moment for Verano, serving as powerful validation of our operational and financial discipline,” George Archos, president and CEO of Verano, said. “We believe this arrangement provides Verano some of the most beneficial terms in the industry including a significantly lower cost of capital, maturity date and prepayment flexibility, and favorable interest rates. With our new facility now in place, we are well-positioned to continue strengthening our balance sheet, and executing strategic growth initiatives aimed at generating long-term value for the company, our employees and shareholders.”
Joseph Campanelli, chairman, president and CEO of Needham Bank, said, “In addition to our role as administrative agent, Needham Bank is pleased to offer a comprehensive suite of financial services including credit, state-of-the-art cash management and consumer payments to Verano, a premier cannabis operator. Our ability to provide local decision making and a compliant, nationwide banking platform perfectly aligns with Verano’s operational excellence and strong financial profile. We look forward to building a rewarding relationship with Verano for many years to come. Furthermore, we are very pleased to partner with Chicago Atlantic, a leading capital provider in the cannabis space, on this facility and continue building our relationship with them in the cannabis sector.”
Peter Sack, managing partner of Chicago Atlantic, noted, “We are thrilled to build upon our relationship with Verano through a partnership of bank and non-bank capital. Needham and Chicago Atlantic operate on the forefront of bringing mainstream financial products to the U.S. cannabis industry. Verano is ideally situated to execute in the next phase of the sector’s development, and Chicago Atlantic is proud to support that growth and Verano’s exceptional team.”
Key Terms of the Agreement
- Principal Amount: $195 million
- Maturity Date: March 11, 2029, with an option for the company to extend the maturity date for an additional one-year period, subject to customary conditions and an extension fee
- Interest Rate: A floating rate equal to Term SOFR plus 5.50%, subject to a 4% Term SOFR floor, or 9.50% per annum
- Amortization: Manageable monthly principal repayments of $875,000 beginning in April 2026
- Prepayment Flexibility: The company maintains the option to voluntarily prepay the term loan with a modest 1.50% prepayment premium during the first two years of the facility and 0% thereafter; provided that if the extension is exercised, the prepayment premium will always be 1.5%
- Use of Proceeds: Proceeds from the term loan, along with other funds, are being used to refinance and retire all outstanding indebtedness under the company’s prior October 2022 credit agreement
A.G.P. Canada Investments acted as exclusive placement agent to Verano. Blank Rome acted as legal counsel to Needham Bank and as counsel to Needham Bank and Chicago Atlantic as co-administrative agents. Winston & Strawn acted as legal counsel to Verano in connection with the transaction.
