Energy Vault Holdings Enters $137.5M Secured Term Loan

What Happened
On August 14, 2026, Energy Vault subsidiaries EV Gen Set 1, LLC and EV Gen Set I HoldCo, LLC entered into a Credit Agreement with CSC Delaware Trust Company (agent) and lenders providing a senior secured term loan facility of approximately $137.5 million to fund the purchase, installation and commissioning of power-generation equipment under an Equipment Supply Agreement. The facility is secured by substantially all assets of the borrowers, guaranteed by the holdco, and matures January 2, 2028.

Key Details

• Loan amount: approximately $137.5 million (term loan facility).
• Purpose: fund equipment purchases and related installation/commissioning under the Equipment Supply Agreement.
• Interest: SOFR loans at 6.75% through Dec 31, 2026, then 7.50% thereafter; ABR loans at 5.75% through Dec 31, 2026, then 6.50% thereafter.
• Maturity and prepayment: matures Jan 2, 2028; voluntary prepayment allowed with 3 business days’ notice (plus accrued interest, breakage costs and any premium); mandatory prepayments on certain proceeds (insurance, asset sales, non‑permitted debt, equity issuances, Advance Payment Bond).
• Security and covenants: first‑priority security interest in substantially all assets (including contract rights and membership interests); standard equipment‑financing covenants and requirements (debt service reserve equal to three months’ debt service, reporting, insurance, law/permit compliance).
• Filing items: disclosed under Item 1.01 (material definitive agreement) and Item 2.03 (creation of a direct financial obligation); Credit Agreement attached as Exhibit 10.1 (with customary redactions).

Why It Matters
This financing provides near‑term capital specifically to acquire and commission power‑generation equipment that supports Energy Vault’s operational projects. For investors, it means the company (through its subsidiaries) has secured an external, collateralized funding source that increases consolidated debt obligations and includes standard covenants that could limit certain activities at the borrowing entities. The facility’s short maturity (Jan 2028) and mandatory prepayment triggers are important to monitor, as they affect refinancing needs and how project proceeds or insurance/asset sales would be applied to the loan.