Orion Group Holdings Inc 8-K

What Happened
Orion Group Holdings, Inc. announced on Dec. 23, 2025 that it entered into a $120.0 million Credit Agreement with a group of lenders and UMB Bank, N.A. as Administrative Agent. The facility includes a $60.0M revolving loan, a $20.0M equipment term loan and a $40.0M acquisition term loan, with a $25.0M accordion option for future acquisitions. Borrowings are secured by substantially all domestic assets, are unconditionally guaranteed by Orion’s domestic subsidiaries, and each loan matures in December 2030. The company used the new facility to repay its prior credit agreement (dated May 15, 2023) and paid a make‑whole of approximately $1.1M.

Key Details

• Total facility: $120.0M (Revolver $60M, Equipment $20M, Acquisition $40M) plus $25M accordion option subject to lender commitments.
• Interest: borrowers may choose ABR or SOFR pricing; add-on margins vary by consolidated senior leverage ratio (SOFR add-on 2.5%–3.0%; ABR add-on 1.5%–2.0%), subject to rate floors and applicable law.
• Financial covenants: consolidated fixed charge coverage ratio ≥ 1.20x; consolidated senior leverage ratio ≤ 3.00x.
• Prior facility terminated: the May 15, 2023 credit agreement with White Oak lenders was repaid in full and terminated; Orion paid approximately $1.1M make‑whole.

Why It Matters
This new credit facility provides Orion with committed liquidity for working capital, equipment and acquisitions and replaces the prior White Oak facility. The secured nature of the loans and the financial covenants (leverage and coverage ratios) will be material for shareholders because they limit financial flexibility only so long as Orion remains compliant; the agreement nonetheless permits dividends and share repurchases if covenants are met. The maturity (Dec. 2030) and the acquisition loan/accordion give Orion multi‑year financing capacity for growth or deals, while interest cost will depend on leverage and market SOFR/ABR rates.