Phoenix Energy One, LLC 8-K

What Happened

• Phoenix Energy One, LLC filed an 8-K reporting Amendment No. 8 to its Amended and Restated Senior Secured Credit Agreement, effective February 12, 2026. The amendment established $75.0 million in Amendment No. 7 Discretionary Delayed Draw Term Loan commitments, all of which were drawn on the amendment effective date. The company said it will use the proceeds to finance development of its oil and gas properties in accordance with its approved development plan.

Key Details

• Amendment No. 8 effective date: February 12, 2026; original Credit Agreement was entered August 12, 2024.
• New commitments: $75.0 million in discretionary delayed-draw term loans — fully drawn as of the amendment date.
• Availability change: aggregate discretionary principal available reduced from $300.0 million to $225.0 million during the delayed-draw availability period.
• Cost: the Amendment No. 7 delayed-draw term loans are subject to a 3.00% original issue discount (OID).
• Covenant relief: limited waivers/amendments were granted for certain covenant tests, including Total Secured Leverage (as of Dec 31, 2025), Current Ratio (period Nov 30, 2025–Jan 31, 2026) and Asset Coverage Ratio (as of Dec 31, 2025).
• Document filed: Amendment No. 8 is included as Exhibit 10.1 to the Form 8-K.

Why It Matters

• The amendment provides immediate liquidity (a $75M draw) to fund oil and gas development, supporting the company’s near‑term operating plan.
• It reduces the remaining discretionary funding capacity under the credit agreement to $225M and increases borrowing cost modestly via a 3% OID, which affects net proceeds and interest economics.
• The covenant waivers lower the risk of a technical default tied to the specific covenant tests noted for the late‑2025 / early‑2026 periods, helping the company avoid potential enforcement actions and continue planned operations.

Keywords: credit agreement, term loan, covenant waivers, liquidity, oil and gas development.