v3.26.1
Loans
 12 Months Ended
Dec. 31, 2025
Debt Disclosure [Abstract]  
Loans
6. LOANS
The following table summarizes the borrowings under the various loan facilities as of December 31, 2025 and 2024:

Effective interest rate as of December 31, 2025December 31,
2025		December 31,
2024
OPAL Term Loan8.8 %$321,618 $271,617 
Revolving Loan7.0 %20,000 15,000 
Sunoma Loan8.9 %19,090 20,846 
Equipment Loan7.1 %559 — 
Less: unamortized debt issuance costs(9,142)(9,839)
Less: current portion of long-term loans(15,062)(12,621)
Total long-term loan$337,063 $285,003 
As of December 31, 2025, principal maturities of debt are expected as follows, excluding any undrawn debt facilities:
Fiscal year:
2026$15,062 
202715,087 
2028318,191 
20292,395 
20302,589 
Thereafter7,943 
$361,267 
Opal Term Loan
On September 1, 2023, the Company restructured its existing credit agreement and entered into a new senior secured credit facility (the "Credit Agreement") with OPAL Fuels Intermediate Holding Company LLC (“OPAL Intermediate Holdco”) as the borrower ("Borrower"), direct and indirect subsidiaries of the Borrower as guarantors (the “Guarantors”), group of banks as lenders and Bank of America, N.A., as administrative agent. The Credit Agreement provides for up to $450,000 of initial and delayed draw term loans (with such delayed draw term loans available for up to 18 months after closing) and $50,000 of revolving loans. The amounts outstanding under the Credit Agreement are secured by the assets of the indirect subsidiaries of OPAL Intermediate Holdco. The outstanding loans under the Credit Agreement initially bear interest at an annual rate of Term SOFR plus margin. The margin increases over time: 3.5% for years 0–3, 3.75% for years 3–4, and 4.0% thereafter. Commitment fee accrues on the daily unused amount at 0.75% per annum. Commencing March 31, 2025, the outstanding principal amount of the term loans was scheduled to amortize at a rate of 1% per quarter and the Borrower is obligated to pay a leverage based cash sweep ranging from 25% to 100% of distributable cash of Borrower and
the Guarantors, and subject to certain other mandatory prepayment requirements. The term and revolving loans mature on September 1, 2028.
The Credit Agreement requires the Borrower to maintain a consolidated debt service coverage ratio of not less than 1.2 to 1.0, as tested on a trailing four quarters basis as of the last day of each fiscal quarter during the term commencing with the quarter ended December 31, 2023, and to maintain a consolidated debt to cash flow ratio of not greater than 4.5 to 1.0 during the delayed draw availability period, and not greater than 4.0 to 1.0 thereafter.
The Credit Agreement includes certain customary and project-related affirmative and negative covenants, including restrictions on distributions, and events of default, which include payment defaults breaches of covenants, changes of control, materially incorrect or misleading representations or warranties, bankruptcy or other events of insolvency and certain project-related defaults. Additionally, the OPAL Term Loan contains restrictions on distributions and additional indebtedness. On March 3, 2025, the Company entered into the first amendment of the Credit Agreement (the “Credit Agreement Amendment”). The Credit Agreement Amendment changes certain covenants, extends the availability period for delay draw term loans under the Credit Agreement through March 5, 2026, and extends the commencement of repayment of such term loans until March 31, 2026. The Credit Agreement Amendment was accounted for as a modification during the year ended December 31, 2025.
As of December 31, 2025, the Company had utilized $14,577 of availability under the revolver loan to provide for the issuance of letters of credit to support the operations of the Borrower and the Guarantors.
Sunoma Loans
On July 19, 2022, Sunoma, an indirect wholly-owned subsidiary of the Company, completed the conversion of the construction loan into a permanent loan with aggregate principal amount of $23,000. The maturity date is July 19, 2033. The outstanding loans under the Sunoma Loan Agreement bear interest at annual fixed rates of 7.8%, and 8.2% per annum during the term. The amounts outstanding under the Sunoma Loan are secured by the assets of Sunoma.
The Company also utilized $927 for the issuance of letters of credit to support the operations. The amounts outstanding under the Sunoma Loan are secured by the assets of Sunoma.
The Sunoma Loan Agreement contains certain financial covenants which require Sunoma to maintain (i) a maximum debt to net worth ratio not to exceed 5:1, (ii) a minimum current ratio not less than 1.0 and (iii) a minimum debt service coverage ratio of trailing four quarters not less than 1.25.
The Company also entered into three equipment loans to finance the purchase of certain machinery. These loans are secured by the underlying machinery and have maturities ranging from 2026 to 2028.