ProFrac Holding Corp. 8-K

What Happened

• ProFrac Holding Corp. (via its indirect subsidiary ProFrac Holdings II, LLC) announced on July 1, 2026 that it entered into a senior secured asset-based revolving credit agreement with Eclipse Business Capital LLC as agent. The new facility provides up to $300.0 million of revolver capacity (with an uncommitted $25.0 million accordion) and matures on July 1, 2030.
• The borrower used amounts drawn under the new Eclipse Credit Agreement, together with cash on hand, to refinance and fully repay its prior credit agreement. The company also entered into a Seventh Supplemental Indenture on July 1, 2026 that, with noteholder consent, increases the amount of permitted indebtedness under the Indenture from $275.0 million to $325.0 million.

Key Details

• Revolver size: $300.0 million initial commitment; uncommitted accordion up to $25.0 million.
• Maturity: July 1, 2030.
• Pricing: Loans bear interest at adjusted term SOFR (2.00% floor) + margin of 4.00%–4.50%, or at a base rate + margin of 3.00%–3.50%, determined by a pricing grid; unused line fee of 0.50% per annum.
• Covenants & security: Obligations are guaranteed by ProFrac Holdings, LLC and other guarantors and secured by liens on substantially all assets; a springing minimum fixed charge coverage ratio of 1.00x applies when availability falls below 10% of gross availability.

Why It Matters

• The new facility provides the company with committed working capital capacity and replaces its prior bank financing, which can improve liquidity flexibility through mid-2030. The indenture amendment also gives the borrower greater headroom to incur additional credit facility indebtedness (raised from $275M to $325M), which is important for capital structure and refinancing options.
• Investors should note the cost of the facility (SOFR floor plus mid-single-digit margins and a 0.50% unused fee) and the collateralized nature of the loans, which affects senior secured claim priority. The company disclosed a press release on July 6, 2026 with these details.