Arq Amends Credit Agreement, Adjusting Borrowing Base and Liquidity Covenants

summarizeSummary

Arq, Inc. entered into a third amendment to its revolving credit agreement, adjusting borrowing availability calculations and temporarily decreasing its minimum liquidity covenant to $2.0 million before increasing it to $5.0 million.

check_boxKey Events · Financing and Capital Events · ARQ

• Credit Agreement Amended

  Arq, Inc. executed a third amendment to its Credit, Security and Guaranty Agreement with MidCap Funding IV Trust, following previous amendments on May 6, 2025, and December 9, 2025.

• Borrowing Base Tightened

  The amendment adjusts the borrowing availability calculation, reducing the percentage of eligible inventory and accounts receivable that can be used for the borrowing base, effective February 28, 2026.

• Liquidity Covenant Adjusted

  The minimum liquidity covenant is temporarily decreased to $2.0 million until February 27, 2026, after which it will increase to $5.0 million.

auto_awesomeAnalysis · ARQ · Industrial Applications And Services

This third amendment to Arq's revolving credit agreement reflects ongoing adjustments to its financial terms. While the temporary reduction in the minimum liquidity covenant to $2.0 million provides short-term flexibility, the simultaneous tightening of borrowing base calculations for eligible inventory and accounts receivable will reduce the company's overall borrowing capacity. The subsequent increase of the minimum liquidity covenant to $5.0 million after February 27, 2026, indicates a return to more stringent requirements. Investors should monitor the company's liquidity and ability to meet these evolving financial covenants.