Debt |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2026 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Debt Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Debt | NOTE 13 – DEBT The Company’s debt consists of the following as of March 31, 2026 and December 31, 2025:
New Senior Credit Facility On March 9, 2026, the Company entered in a new, five year senior credit facility ("New Senior Credit Facility") with CCH1 MEH Lender LLC (a wholly owned subsidiary of Hannon Armstrong Capital LLC “HASI”) that consists of up to $200,000 in senior indebtedness, of which $155,000 is outstanding as of March 31, 2026. These proceeds were used to repay all outstanding debt of the Company at the date of closing. Subject to various requirements as defined in the underlying agreement, the Company expects to have an additional $45,000 in proceeds to draw upon the conclusion of certain engineering review and operational requirements of its Montauk Ag Renewables project in North Carolina. Finally, the Company maintains a cash collateralized facility with an entity not related to the HASI New Senior Credit Facility and has issued $2,185 of letters of credit, for which the Company is required to maintain 105% of cash collateral. The New Senior Credit Facility matures in . The New Senior Credit Facility includes various affirmative and negative covenants that require the Company to meet specified financial ratios and financial tests, as defined in the underlying agreement. Under the New Senior Credit Facility, the Company is required to maintain: • Total Net Leverage Ratio (as defined in the New Senior Credit Facility) of not more than 4.00 to 1.00, and • As of the end of each fiscal quarter, a Fixed Charge Coverage Ratio (as defined in the New Senior Credit Facility) of not less than 1.20 to 1.00, and • Various other financial covenants or mandatory prepayments (as defined in the New Senior Credit Facility) The New Senior Credit Facility is subject to customary events of default and contemplates that the Company would be in default if, for any fiscal quarter (x) the average monthly D3 RIN price is less than $1.00 per RIN and (y) the consolidated average quarterly trailing EBITDA over the previous four quarters is less than $10,000. The New Senior Credit Facility has a 24-month availability period during which only interest is payable quarterly. After the availability period, the Company is required to make quarterly principal payments equal to 1.25% of the total outstanding principal. A final $131,750 payment is due March 2031. The interest rate of the New Senior Credit Facility is 10.25%. As of December 31, 2025, under the prior credit agreement with Comerica Bank, $44,000 and $85,000 was outstanding under the term loan and revolver, respectively. In addition, the Company had $2,571 of outstanding letters of credit as of December 31, 2025. Amounts available under the revolving credit facility are reduced by any amounts outstanding under letters of credit. As of December 31, 2025, the Company’s capacity available for borrowing under the revolving credit facility was $32,429. Borrowings of the term loan and revolving credit facility bore interest at the Secured Overnight Financing Rate plus an applicable margin. The interest rate as of December 31, 2025 was 6.44%. As of December 31, 2025, the Company was in compliance with all applicable financial covenants under the old credit agreement. The New Senior Credit Facility debt covenants commence June 30, 2026, with trailing cumulative calculations as applicable under the agreement. |
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