Item 2.03. Creation of a Direct Financial Obligation or an Obligation under an
Off-Balance Sheet Arrangement of a Registrant.
As previously disclosed, Charah Solutions, Inc. (the "Company") entered into the
Term Loan Agreement (the "Term Loan Agreement") by and among Gibbons Creek
Environmental Redevelopment Group, LLC, a Texas limited liability company (the
"Term Loan Borrower"), as borrower, the Company and Charah, LLC, a Kentucky
limited liability company ("Charah, LLC"), as guarantors, and Charah Preferred
Stock Aggregator, LP, a Delaware limited partnership, as lender. The Term Loan
Agreement provides for a delayed-draw term loan in an aggregate principal amount
of $20.0 million. Borrowings under the Term Loan Agreement accrue interest at a
percentage per annum equal to 12.0%, with interest payments due on the first
business day of each calendar quarter following the effective date of the Term
Loan Agreement, and on the maturity date.
On September 29, 2022, the Company elected to draw down $6.0 million of the Term
Loan Agreement to fund operating activities. Immediately following this
drawdown, $16.0 million of aggregate loans were outstanding and $4.0 million of
borrowing capacity remained available under the Term Loan Agreement,
representing the Company's total borrowing capacity under all current long-term
financing arrangements.
The foregoing description of the Term Loan Agreement is qualified in its
entirety by reference to the full text of such agreement which was filed as
Exhibit 10.1 to the Current Report on Form 8-K filed by the Company on August
15, 2022.
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