Arq, Inc. 8-K

What Happened

• Arq, Inc. announced a Fifth Amendment to its Credit, Security and Guaranty Agreement dated March 31, 2026, with MidCap Funding IV Trust as agent and the lenders party to the facility.
• The amendment replaces the existing minimum liquidity covenant with a new availability reserve requirement of $2.5 million effective immediately, which increases to $5.0 million beginning January 2027. It also adds certain eligible equipment and Rolling Stock to the borrowing availability calculation and temporarily allows higher single-customer concentration in the definition of Eligible Accounts through August 2026. The full amendment is filed as Exhibit 10.1 to the 8-K.

Key Details

• Amendment date: March 31, 2026 (Fifth Amendment to the Revolving Credit Agreement).
• Availability reserve: $2.5 million now; increases to $5.0 million in January 2027.
• Borrowing base change: certain eligible equipment and Rolling Stock added to availability calculation.
• Customer concentration: definition of Eligible Accounts amended to permit higher single-customer concentration until August 2026.

Why It Matters

• The change replaces a prior minimum liquidity covenant with a specified availability reserve that sets a firm minimum cash/borrowing cushion the company must maintain (rising to $5M in Jan 2027), which is a key metric for short‑term liquidity and borrowing capacity.
• Adding equipment and Rolling Stock to the borrowing base can increase the company’s available borrowing capacity under the facility.
• Temporarily allowing higher single-customer concentration affects how receivables are treated in the credit agreement until August 2026.
• Investors should note these contract changes when assessing Arq’s near-term liquidity, covenant constraints, and financing flexibility; the amendment and its omitted schedules/exhibits are available as filed with the 8-K.