Stabilis Solutions, Inc. 8-K

What Happened
Stabilis Solutions, Inc. (SLNG) reported on Form 8-K that on June 29, 2026 it entered a Second Modification Agreement with The Huntington National Bank (successor to Cadence Bank) amending its June 9, 2023 loan agreement. The amendment (filed June 30, 2026) requires a segregated, blocked Cash Collateral Account funded with at least $5,000,000 as security and revises the financial covenant to require a minimum Fixed Charge Coverage Ratio of 1.20 to 1.00 (tested on a trailing 12‑month basis as of each fiscal quarter end), effective for quarter-end tests beginning March 31, 2027.

Key Details

• Amendment date: June 29, 2026; Form 8‑K filed June 30, 2026.
• Cash Collateral Account: minimum initial funding $5,000,000; controlled by the Bank; availability under the revolver limited to the Cash Collateral Account balance (capped at $10,000,000) until covenant compliance.
• Covenant: minimum Fixed Charge Coverage Ratio of 1.20:1.00, tested quarterly on a trailing‑12‑month basis starting with the quarter ending March 31, 2027.
• Transition: After two consecutive quarters demonstrating the covenant, availability reverts to borrowing‑base mechanics up to $10,000,000 and the Cash Collateral Account will be released. Borrowers paid a $15,000 upfront fee to the Bank.

Why It Matters
This amendment tightens borrowing terms and restricts immediate access to the company’s revolving credit until SLNG demonstrates improved cash‑flow coverage. For investors, the blocked $5M+ cash requirement and the covenant test introduce liquidity constraints that could limit the company’s short‑term flexibility to draw on its credit facility (subject to a $10M cap). The changes are material to assessing near‑term liquidity and funding risk but do not itself change reported revenue or operating results.