Energy Vault Announces $25M Senior Secured Credit Facility

What Happened Energy Vault Holdings, Inc. filed an 8-K on September 22, 2026 disclosing that its indirect subsidiary, Development Vault, LLC, entered on September 18, 2026 into an amended and restated financing agreement providing a senior secured delayed-draw term loan facility with aggregate commitments of up to $25,000,000 (lenders may increase at their option). S2G Builders Special Opportunities Fund I, LP serves as administrative agent and collateral agent. As of the effective date, $18 million was outstanding. The facility matures April 16, 2030 and is secured by first‑priority liens on substantially all assets of the borrower and each subsidiary guarantor.

Key Details

• Facility size: up to $25,000,000 (incremental increases possible by lender/borrower agreement).
• Outstanding borrowings as of A&R Effective Date: $18,000,000.
• Interest: 10.0% per annum payable in cash + 7.0% per annum payable in kind (deferred).
• Use of proceeds: acquisition of approved battery energy storage projects, sponsor equity, transaction costs, and project‑related expenses (site control, fees, deposits, equipment).
• Prepayment/terms: borrower may prepay with 5 business days’ notice subject to an Exit Fee; mandatory prepayments on monetization events, insurance/condemnation proceeds, certain debt proceeds, and reductions of commitments.
• Security and guarantees: obligations guaranteed by subsidiary guarantors and secured by first‑priority security interests, including equity interests in the Borrower.

Why It Matters This financing gives Energy Vault’s project subsidiary immediate access to capital to acquire and develop battery energy storage projects and to support project-level costs without an immediate equity raise. The facility is relatively expensive (10% cash interest plus 7% PIK) and is secured by project assets and guaranties, meaning it creates prioritized obligations at the subsidiary/project level. Investors should note the $18M outstanding draw and the potential for up to $25M in total commitments, the April 2030 maturity, and the customary prepayment and covenant mechanics that could affect project cash flows and consolidated credit exposure. The full financing agreement is filed as Exhibit 10.1 to the 8‑K.