Shoals Technologies Group, Inc. 8-K

What Happened
On June 10, 2026, Shoals Technologies Group, Inc. filed an 8-K disclosing Amendment No. 7 to its existing credit agreement with Wilmington Trust (Collateral Agent), JPMorgan Chase (Administrative Agent) and participating lenders. The Amendment creates a new $50,000,000 tranche of incremental revolving loans (the "2026 Incremental Revolving Loans") available for 18 months, replaces the prior first-lien secured leverage covenant with a maximum consolidated total leverage ratio of 4.00:1.00 (with temporary increases allowed for a material acquisition), and makes other customary covenant changes. The incremental revolver otherwise carries substantially the same terms as the existing revolver and may be prepaid at any time without penalty.

Key Details

• Incremental revolving loan amount: $50,000,000.
• Availability period: 18 months from the June 10, 2026 Effective Date.
• New leverage covenant: maximum consolidated total leverage ratio of 4.00:1.00 (temporary increases permitted for material acquisitions).
• Incremental loans may be prepaid at any time without premium or penalty.

Why It Matters
The amendment increases Shoals' short-term borrowing capacity and revises the leverage metric lenders use to assess the company. That added liquidity can support working capital, operations, or potential acquisitions, while the new total leverage covenant and its temporary flexibility for deals may give management more room to pursue transactions. Investors should note the incremental facility is temporary (18 months) and the change alters how debt levels are measured under the credit agreement.